The Senate Finance Committee heard testimony on five different Social Security reform plans today. And ladies and gentlemen, we have one clear winner.
Two of the plans are tax increase non-starters that don't even include personal accounts. In fact both plans, by Peter Oszag of The Brookings Institution and Joan Entmacher of the National Women's Law Center spent all their time beating the same drum about how awful it would be to allow people to own their own Social Security only to finish up with a quick line about soaking the rich. You can read their plans here and here, if you must.
Two plans urge establishing personal accounts but fall short by advocating benefit cuts. Doing this just doesn't make any sense politically. Again, if you are as masochistic as you are ambitious, these two are here and here.
Only one plan shows an understanding of how personal accounts provide a better deal for workers and sustains the system permanently (and includes a neat wrinkle that calls for reduced government spending, which everyone claims to want). Peter Ferrara, Senior Fellow at the Institute for Policy Innovation. This one is worth reading and the link is here.
The Social Security Trust Fund has as much money in it as Jonathan Miller's Unclaimed Property Fund. Zero. In 2018, (less than thirteen years away if you are keeping score) we will have to dig into other programs or raise taxes to meet current obligations of Social Security. If we do nothing, present law dictates that benefits be cut 28% when Social Security can't pay all its own obligations. The "there is no crisis" crowd can't be allowed to win this one.
It is time to engage.
Tuesday, April 26, 2005
Social Security War Begins
The Senate Finance Committee begins work today on Social Security reform. Despite the questionable polling data, ranting editorials (forget the link, you know what I am talking about), and obstructing politicians (see Ben Chandler), the time to do the right thing has come.
Saving Social Security must include personal investment accounts. Otherwise we are just raising taxes or cutting benefits. We have already poured trillions into this rat hole. Let's at least look at ways to get better value. I haven't heard anything from the Democrats to lead me to believe that compromising on the accounts will do anything but make a flawed program worse.
Saving Social Security must include personal investment accounts. Otherwise we are just raising taxes or cutting benefits. We have already poured trillions into this rat hole. Let's at least look at ways to get better value. I haven't heard anything from the Democrats to lead me to believe that compromising on the accounts will do anything but make a flawed program worse.
Monday, April 25, 2005
2020 Democrats: Bush To Draft You Now, Starve You Later
A group of young liberals from Boston called 2020 Democrats connects their misunderstanding of Social Security to their continued confusion over the war on terror. The funny part is they lay it out in a talking points memo.
The group says President Bush "played those games with our generation once and wound up with a war and a potential draft" and "his (Social Security) plan would cost nearly $5 trillion over the first twenty years."
The "potential draft" quote relates to a long-since discredited late attempt by candidate John Kerry to scare young voters against supporting the President in the 2004 election. The $5 trillion "cost" represents the Social Security Trust Fund dollars that have been spent as off-budget money and will have to be replaced eventually whether Social Security investment accounts are set up or not. The cost is real, but the reason for the cost has nothing to do with personal accounts. These young "future leaders" in the liberal movement might need to have someone check their homework.
The group says President Bush "played those games with our generation once and wound up with a war and a potential draft" and "his (Social Security) plan would cost nearly $5 trillion over the first twenty years."
The "potential draft" quote relates to a long-since discredited late attempt by candidate John Kerry to scare young voters against supporting the President in the 2004 election. The $5 trillion "cost" represents the Social Security Trust Fund dollars that have been spent as off-budget money and will have to be replaced eventually whether Social Security investment accounts are set up or not. The cost is real, but the reason for the cost has nothing to do with personal accounts. These young "future leaders" in the liberal movement might need to have someone check their homework.
Rudolph: KY Needs To Stop Lagging With KAPT
Finance Cabinet Secretary Robbie Rudolph lays out the case for cutting our losses in the money-losing KAPT mess still championed by Treasurer Jonathan Miller, who seems to be happy to let Kentucky continue to lag behind West Virginia.
LA Times: All the Non-News That Fits
Here is a last ditch effort from the Left Coast to head off the GOP Senate effort to end filibusters of judicial nominees. The story is real (the U.S. Chamber of Commerce is afraid Sen. Harry Reid (D-NV) will keep his promise to shut down the Senate), but rehashed only to stop the Senate Republicans from acting in support of President Bush's nominees.
I say since Joe Biden(D-DE) is calling for "compromise," the Republicans should go ahead with their plans and call Reid's bluff. Oh, and forget the compromise on this one.
I say since Joe Biden(D-DE) is calling for "compromise," the Republicans should go ahead with their plans and call Reid's bluff. Oh, and forget the compromise on this one.
Sunday, April 24, 2005
Pedophilia Scandal In Kentucky
Would you believe that Planned Parenthood is shielding Kentucky pedophiles from prosecution in the name of "privacy?"
Check back with Kentucky Progress this week for information about this disgusting criminal behavior.
Check back with Kentucky Progress this week for information about this disgusting criminal behavior.
Concede One Fact, Make Up Another?
"Now sure, a few workers may win big under the President's plan but all it takes is one poor investment and workers could lose everything," Rep. Ben Chandler (D-KY) in a statement not reported by the media.
Saturday, April 23, 2005
The Number is Zero, Rep. Chandler
"Over the past few years we have seen a number of stock market disasters where individuals lost every penny of their retirement income on the stock market," said Ben Chandler (D-KY), in trying to scare constituents out of a common sense approach to investing (diversified index funds) and back into the pitiful returns of Social Security.
ChandlerWatch: Congressman Plays Head In Sand
"We can rely on the savings in the Social Security Trust Fund to continue payments (to beneficiaries). The program is not in crisis but in fact has enough saved to cover several generations without reform."
--Rep. Ben Chandler (D-KY) making his case against fixing Social Security.
What Congressman Chandler doesn't want you to know is that the Social Security Trust Fund has no money in it. In fact, he has been vocal in his support for tax increases to address the Social Security shortfall despite his campaign promise in January 2004 not to ever support higher taxes if the voters of central Kentucky would send him to Iceland to serve as one of Nancy Pelosi's appointees to the NATO Parliamentary Assembly.
Advocating tax increases makes sense for Chandler only in the sense that it would provide the revenue to paper over his "misstatement" quoted here.
--Rep. Ben Chandler (D-KY) making his case against fixing Social Security.
What Congressman Chandler doesn't want you to know is that the Social Security Trust Fund has no money in it. In fact, he has been vocal in his support for tax increases to address the Social Security shortfall despite his campaign promise in January 2004 not to ever support higher taxes if the voters of central Kentucky would send him to Iceland to serve as one of Nancy Pelosi's appointees to the NATO Parliamentary Assembly.
Advocating tax increases makes sense for Chandler only in the sense that it would provide the revenue to paper over his "misstatement" quoted here.
Friday, April 22, 2005
ABC Does It Again
On the heels of ABC's "GOP Leadership Talking Points" scandal, ABC's Chicago affiliate stepped in it when trying to make hay out of an innocuous, polite comment by retiring Rep. Henry Hyde (R-IL).
During a wide-ranging interview in which Hyde and reporter Andy Shaw discussed Hyde's long career in Congress that will end next year, Shaw asked if the Clinton impeachment was "pay back" for Nixon.
What Rep. Hyde did not say was "You idiot, why would you ask such a stupid question? Some people may have thought that, but in Congress we just went on the facts of the case."
Instead he politely replied "I can't say it wasn't, but I also thought that the Republican party should stand for something, and if we walked away from this, no matter how difficult, we could be accused of shirking our duty, our responsibility."
In this way, Hyde made his best effort to diffuse that part of the conversation, ignoring the stupid question and allowing the interviewer to get back on track.
The funny thing is that the ABC7 Chicago website had a headline this morning that blared "Clinton Impeachment Was Retaliation For Nixon, Says Retiring Congressman." This was, of course, completely untrue.
At some point today, they pulled down the story, according to the Drudge Report. Now it is back up with the story re-written and the headline changed to "Rep. Hyde Reflects on 30 Years of Office."
I guess they were hoping no one would notice their effort to turn bad journalism into an embarrassment for a Republican.
During a wide-ranging interview in which Hyde and reporter Andy Shaw discussed Hyde's long career in Congress that will end next year, Shaw asked if the Clinton impeachment was "pay back" for Nixon.
What Rep. Hyde did not say was "You idiot, why would you ask such a stupid question? Some people may have thought that, but in Congress we just went on the facts of the case."
Instead he politely replied "I can't say it wasn't, but I also thought that the Republican party should stand for something, and if we walked away from this, no matter how difficult, we could be accused of shirking our duty, our responsibility."
In this way, Hyde made his best effort to diffuse that part of the conversation, ignoring the stupid question and allowing the interviewer to get back on track.
The funny thing is that the ABC7 Chicago website had a headline this morning that blared "Clinton Impeachment Was Retaliation For Nixon, Says Retiring Congressman." This was, of course, completely untrue.
At some point today, they pulled down the story, according to the Drudge Report. Now it is back up with the story re-written and the headline changed to "Rep. Hyde Reflects on 30 Years of Office."
I guess they were hoping no one would notice their effort to turn bad journalism into an embarrassment for a Republican.
Clear Channel Radio Takes The KAPT Challenge
Kudos to Caleb Brown, reporter at WHAS and the Kentucky News Network and host of the Sunday morning Kentucky Focus program. Mr. Brown will have Jonathan Miller and Kentucky Progress' David Adams on his show this weekend to investigate the KAPT scandal.
All we ask is that he look into Mr. Miller's bogus claim that there is $150 million in unclaimed funds backing up the money-losing KAPT program.
UPDATE: Caleb Brown seems to be asking the tough questions of both sides, those urging fiscal responsibility AND the State Treasurer. This story is set to take off next week.
All we ask is that he look into Mr. Miller's bogus claim that there is $150 million in unclaimed funds backing up the money-losing KAPT program.
UPDATE: Caleb Brown seems to be asking the tough questions of both sides, those urging fiscal responsibility AND the State Treasurer. This story is set to take off next week.
Thursday, April 21, 2005
Rep. Hyde Comments Taken Out of Context
The MSM will be pretty worked up Friday about Rep. Henry Hyde (R-IL) saying that Clinton's impeachment was payback for Nixon. He didn't say it.
In a wide-ranging interview about his career in the House and after questions about the personal attacks that he took as House manager of the Impeachment proceedings, Hyde was asked if he thought Clinton was payback for Nixon.
He said "I can't say it wasn't, but I also thought that the Republican party should stand for something, and if we walked away from this, no matter how difficult, we could be accused of shirking our duty, our responsibility."
Hardly the announcement that it will probably be made out to be.
In a wide-ranging interview about his career in the House and after questions about the personal attacks that he took as House manager of the Impeachment proceedings, Hyde was asked if he thought Clinton was payback for Nixon.
He said "I can't say it wasn't, but I also thought that the Republican party should stand for something, and if we walked away from this, no matter how difficult, we could be accused of shirking our duty, our responsibility."
Hardly the announcement that it will probably be made out to be.
Double Dog Dare to Mainstream Media
The judge doesn't get it, so kiss your money goodbye. The only question is will the media investigate?
Franklin Circuit Court Judge Roger Crittenden has issued his Findings of Fact and Conclusions of Law in the KAPT scandal. In the document, he repeatedly refers to the "Unclaimed Property Fund" as the source of the $13.7 million at the heart of the controversy.
The problem is that Judge Crittenden does not appear to grasp the fact that there is no such fund. The indisputable fact -- disputed loudly by Jonathan Miller -- is that there is no money in the account representing the liquidated abandoned property held by the state.
The bottom line is that taxpayer money was used to fill the unfunded liability hole in the money-losing KAPT program and much more will be lost if Miller is allowed to keep the program open and generating future losses.
I double dog dare anyone in the mainstream media to investigate and PROVE ME WRONG on this.
Franklin Circuit Court Judge Roger Crittenden has issued his Findings of Fact and Conclusions of Law in the KAPT scandal. In the document, he repeatedly refers to the "Unclaimed Property Fund" as the source of the $13.7 million at the heart of the controversy.
The problem is that Judge Crittenden does not appear to grasp the fact that there is no such fund. The indisputable fact -- disputed loudly by Jonathan Miller -- is that there is no money in the account representing the liquidated abandoned property held by the state.
The bottom line is that taxpayer money was used to fill the unfunded liability hole in the money-losing KAPT program and much more will be lost if Miller is allowed to keep the program open and generating future losses.
I double dog dare anyone in the mainstream media to investigate and PROVE ME WRONG on this.
Bowling for Caribou
Congressman Ben Chandler (D-Iceland) voted yesterday to help European environmentalists prevent oil and gas exploration in the Arctic National Wildlife Reserve and continue America's high level of dependence on imported petroleum.
But America won on a largely party line vote 231-200.
But America won on a largely party line vote 231-200.
Wednesday, April 20, 2005
ChandlerWatch Continues
There was a flurry of amendment activity from House Democrats Wednesday night. Waiting for all the details to come available and will report quickly Thursday.
Come To the Table or Karl Rove Will Eat Your Lunch, Again
Congressman Mike Pence (R-IN) is calling on President Bush to put up a specific plan for Social Security reform. While I look forward to getting the show on the road (and share Pence's support for the Ryan/Sununu plan) I support the method the President is using to build support for reform. As a result of his efforts to date, very few people can still insist there is no crisis and they are getting increasingly shrill.
Of course, now they have little choice but to continue fighting reform as so many of them have gone on the record with stupid statements that can haunt them if reform passes.
I just wish there were some liberals willing to have a serious discussion about the issue. It shouldn't be a partisan argument. Numbers are neither liberal nor conservative and this particular episode of obstructionism reeks of political calculation.
Of course, now they have little choice but to continue fighting reform as so many of them have gone on the record with stupid statements that can haunt them if reform passes.
I just wish there were some liberals willing to have a serious discussion about the issue. It shouldn't be a partisan argument. Numbers are neither liberal nor conservative and this particular episode of obstructionism reeks of political calculation.
GOP Must Fight or Die
USA Today takes on the favorite topics of how Democrats can stop losing elections with two op/ed pieces. It is worthwhile reading for conservative people. One says to not change anything and the other says to lie more. Ross Baker writes, interestingly and correctly, that Democrats did well with the hand they were dealt in 2004 and should merely press on with the support they are energizing.
This is the one that Republicans should fear and respond to.
Republicans who choose to rest on their laurels given recent electoral success deserve to get smashed. We face significant issues that merit hair-on-fire activism by conservatives. Examples include tax reform, entitlement reform, and battling terrorism. The fantastic opportunity conservatives have to separate themselves from the loyal opposition exists, but must be actively embraced on a large scale for it to have any value.
Embrace this soon, or regret it soon enough.
This is the one that Republicans should fear and respond to.
Republicans who choose to rest on their laurels given recent electoral success deserve to get smashed. We face significant issues that merit hair-on-fire activism by conservatives. Examples include tax reform, entitlement reform, and battling terrorism. The fantastic opportunity conservatives have to separate themselves from the loyal opposition exists, but must be actively embraced on a large scale for it to have any value.
Embrace this soon, or regret it soon enough.
Can't Blog Now, Gotta Talk on WVLK 590
I'll be on Jack Pattie's show at 9 am talking about federal tax reform. Call in number is 253-5959.
Tuesday, April 19, 2005
Movement on KAPT Scandal Today
The Franklin Circuit Court today issued a summary of findings on the KAPT scandal. Embattled state Treasurer Jonathan Miller's reputation has been damaged by uncovered details of financial problems for the KAPT program, including the fact that the abandoned property fund backing up KAPT has been completely squandered.
The mainstream media, curiously, is going to great lengths to ignore the details of this story. We will keep you posted as more information is uncovered.
The mainstream media, curiously, is going to great lengths to ignore the details of this story. We will keep you posted as more information is uncovered.
Lexington Herald Leader Wrong on Estate Tax
The Lexington Herald Leader passes on a bit of bad information this morning (dead tree version only) on it's opinion page. Their reprint of a San Jose Mercury News unsigned editorial gives us a commonly repeated lie about the death tax.
The editorial states that the current estate tax exemption ($1.5 million) and that of a "compromise" Democrat bill that would have raised it to $3.5 million, is worth $3 million and $7 million respectively, for couples. This simply isn't true, and they have to know it. When one spouse dies, his or her estate passes on to the surviving spouse with no estate tax liability. When the surviving spouse dies, he or she gets one exemption. So doubling the exemption for a "couple" does not happen.
A simple example would be a couple with $2.5 million dollars, less than the $3 million "couple" exemption. The death of the first spouse would cause the entire estate to pass on to the surviving spouse. The death of the surviving spouse would result in the application of the $1.5 million exemption and leave $1 million subject to the death tax. This obviously wouldn't be the case if there were a $3 million "couple" exemption. But there isn't.
Again, this is such an elementary detail of estate tax law that the Democrats in Congress and their friends at the New York Times and Washington Post would have to know the truth. What seems most likely is that they are counting on you not taking the time to check out their spin.
We'll hold our breath waiting for a correction from the Herald Leader.
The editorial states that the current estate tax exemption ($1.5 million) and that of a "compromise" Democrat bill that would have raised it to $3.5 million, is worth $3 million and $7 million respectively, for couples. This simply isn't true, and they have to know it. When one spouse dies, his or her estate passes on to the surviving spouse with no estate tax liability. When the surviving spouse dies, he or she gets one exemption. So doubling the exemption for a "couple" does not happen.
A simple example would be a couple with $2.5 million dollars, less than the $3 million "couple" exemption. The death of the first spouse would cause the entire estate to pass on to the surviving spouse. The death of the surviving spouse would result in the application of the $1.5 million exemption and leave $1 million subject to the death tax. This obviously wouldn't be the case if there were a $3 million "couple" exemption. But there isn't.
Again, this is such an elementary detail of estate tax law that the Democrats in Congress and their friends at the New York Times and Washington Post would have to know the truth. What seems most likely is that they are counting on you not taking the time to check out their spin.
We'll hold our breath waiting for a correction from the Herald Leader.
Liberal Study: Cut Spending and Spending Goes Down
The Center on Budget and Policy Priorities, the far left think tank under fire for its support for tax increases and the status quo on America's deteriorating entitlements, has issued a stunning report on government spending.
The CBPP's report on Ohio's consideration of a taxpayer bill of rights warns that legislative efforts to mandate spending cuts might result in lower spending. And that, the study concludes, would be bad.
Yes, they really did.
The CBPP's report on Ohio's consideration of a taxpayer bill of rights warns that legislative efforts to mandate spending cuts might result in lower spending. And that, the study concludes, would be bad.
Yes, they really did.
Conservative Dems of The World, Unite!
The Democratic Leadership Council, Washington D.C.'s self-proclaimed "conservative Democrats" have made it official: they are going to stop obstructing on entitlement reform and taxes.
Disappointing, though, is that they propose to change their tune and cure society's ills by moving to the left.
Their grand solution includes more tax credits and expanded tax deductions to be "paid for" by tax increases.
I am serious.
Disappointing, though, is that they propose to change their tune and cure society's ills by moving to the left.
Their grand solution includes more tax credits and expanded tax deductions to be "paid for" by tax increases.
I am serious.
Monday, April 18, 2005
Fruits and Nuts in Frankfort
What is Sen. Ed Worley(D-Richmond) doing chatting up communist wacko and perennial Democrat candidate for President Lyndon "Let's Nationalize the Auto Industry" LaRouche?
Talking Taxes on Lexington Radio
Be sure to tune in Wednesday at 9 AM to the Jack Pattie Show on WVLK 590 AM to hear yours truly talking about the upcoming tax reform debate. Call in to 253-5959 with comments, criticisms, and complaints!
Thunder Flap: Louisville Pacifists Hate Planes
Leftist wacko groups are protesting today the use of military planes in the Thunder over Louisville program.
Interesting how the story claims a coalition of "peace and religious groups" are upset. Looks like the left is holding on to their misread of last year's exit polling data by calling their nutty little confabs "religious groups."
Interesting how the story claims a coalition of "peace and religious groups" are upset. Looks like the left is holding on to their misread of last year's exit polling data by calling their nutty little confabs "religious groups."
Sunday, April 17, 2005
Homosexual "Bishop" Talks Abortion
Less than three weeks after coming under fire for suggesting Jesus Christ was a homosexual, Episcopal "Bishop" Gene Robinson, a Lexington Ky native, was caught giving political advice to Planned Parenthood in a speech Friday.
Robinson said "We need to teach people about nuance ... that this can be true and that can be true, and somewhere between is the right answer. It's a very adult way of living, you know." He added "We must use people of faith to counter the faith-based arguments against us."
Yes, he really said that.
Robinson left his wife and two young daughters in 1986 for another man.
Robinson said "We need to teach people about nuance ... that this can be true and that can be true, and somewhere between is the right answer. It's a very adult way of living, you know." He added "We must use people of faith to counter the faith-based arguments against us."
Yes, he really said that.
Robinson left his wife and two young daughters in 1986 for another man.
Sounds Like KY Budget "Negotiations"
We've made reference on this site to similarities between structural problems in Social Security and the KAPT scandal. The politics of Social Security reform, meanwhile, seems to mirror that of Kentucky's budget negotiations of the last two sessions in the General Assembly.
Just as Washington D.C. Democrats continue to insist either that there is no problem with Social Security or that it is so frail that it will not survive reform efforts, Frankfort House Democrats last year repeatedly refused to meet Republicans to discuss Kentucky's budget.
Just as the media last year failed to report on House Speaker Jody Richards' refusal to meet with Republicans to negotiate on the budget, journalists have blatantly manipulated the debate on Social Security reform. The latest example of this is noteworthy.
The Los Angeles Times yesterday reported on a Social Security opt out program in Ohio that has "attracted few takers" stating that the "popularity of the private accounts" has been "relatively low." (Note that the words in quotes above were words of LA Times reporters and were not attributed to anyone else.)
This dim view of a program that allowed individuals to opt out of Social Security for a private plan was striking. I had never heard of Ohio's plan, but every other plan I had heard of was both popular and successful. So I did a little research.
Bottom line: What was the participation level among eligible employees for Ohio's version of private Social Security accounts?
Ninety seven percent.
While Kentucky voters are asking themselves why they had to wait a year for Democrats to come to the table on the budget, national voters may soon be wondering why Congressional Democrats fiddled so long while Social Security crumbled.
Just as Washington D.C. Democrats continue to insist either that there is no problem with Social Security or that it is so frail that it will not survive reform efforts, Frankfort House Democrats last year repeatedly refused to meet Republicans to discuss Kentucky's budget.
Just as the media last year failed to report on House Speaker Jody Richards' refusal to meet with Republicans to negotiate on the budget, journalists have blatantly manipulated the debate on Social Security reform. The latest example of this is noteworthy.
The Los Angeles Times yesterday reported on a Social Security opt out program in Ohio that has "attracted few takers" stating that the "popularity of the private accounts" has been "relatively low." (Note that the words in quotes above were words of LA Times reporters and were not attributed to anyone else.)
This dim view of a program that allowed individuals to opt out of Social Security for a private plan was striking. I had never heard of Ohio's plan, but every other plan I had heard of was both popular and successful. So I did a little research.
Bottom line: What was the participation level among eligible employees for Ohio's version of private Social Security accounts?
Ninety seven percent.
While Kentucky voters are asking themselves why they had to wait a year for Democrats to come to the table on the budget, national voters may soon be wondering why Congressional Democrats fiddled so long while Social Security crumbled.
Friday, April 15, 2005
Central Kentucky Deaniacs Go To Washington
The 72% crowd went to the nation's Capitol for a sit down with Rep. Ben Chandler's staffers.
I love the part about "privatization" being a "more accurate" term than "personal account." Which is it, do they really not know what privatization means, or are they lying to each other?
I love the part about "privatization" being a "more accurate" term than "personal account." Which is it, do they really not know what privatization means, or are they lying to each other?
Debunked on SSI, Chandler Attacks Veterans
The question people should be asking in central Kentucky is "Would Happy Chandler approve of grandson Ben Chandler's undistinguished tenure in Washington D.C.?"
Chandler's latest propaganda campaign picks up the party line that Republicans are trying to shortchange veterans. Here at Kentucky Progress we are doing a complete analysis of Chandler's claims (basically the Democratic party line, it seems) and will report next week.
Given Rep. Chandler's fast-and-loose treatment of the facts on Social Security reform and his horrendous record on fiscal issues, constituents have cause for skepticism. A hint -- one thing we are looking at is Bush's record on veterans' benefits and that of Congress since 1994 versus that of the pre-1994 glory days for Democrats.
From the words-have-meaning department: Bush "cuts" don't seem to square with the $20 billion increase in spending on veterans proposed in this year's budget and the 41% increase in spending on veterans medical benefits during the President's first term.
Silly liberal, that's why veterans vote Republican.
Stay tuned for updates.
Chandler's latest propaganda campaign picks up the party line that Republicans are trying to shortchange veterans. Here at Kentucky Progress we are doing a complete analysis of Chandler's claims (basically the Democratic party line, it seems) and will report next week.
Given Rep. Chandler's fast-and-loose treatment of the facts on Social Security reform and his horrendous record on fiscal issues, constituents have cause for skepticism. A hint -- one thing we are looking at is Bush's record on veterans' benefits and that of Congress since 1994 versus that of the pre-1994 glory days for Democrats.
From the words-have-meaning department: Bush "cuts" don't seem to square with the $20 billion increase in spending on veterans proposed in this year's budget and the 41% increase in spending on veterans medical benefits during the President's first term.
Silly liberal, that's why veterans vote Republican.
Stay tuned for updates.
Tax Day Great Time To Consider Reform
On D-Day for federal taxes, now would be a great time to suggest that you go to the Americans For Fair Taxation website for a great program to reform the way we finance our government.
Any comments, complaints, or criticisms?
Any comments, complaints, or criticisms?
The Columnist Who Ate Central Kentucky
As guest host of The Sue Wylie Show on WVLK AM 590, Herald Leader columnist Cheryl Truman this morning suggested county consolidation in Kentucky that would involve expanding Fayette county to include all of Jessamine, Madison, Bourbon, and Woodford counties.
How's that for a takeover?
While an argument can certainly be made for consolidating some local governments, few residents of counties surrounding Lexington want to get sucked into that deal.
How's that for a takeover?
While an argument can certainly be made for consolidating some local governments, few residents of counties surrounding Lexington want to get sucked into that deal.
What All The Excitement Is About..
The Conservative Edge will hold its first annual Conservative Bloggers Conference! If you want to learn why blogs are getting so much attention and what their future impact will be, this is the place for you. We'll have presenters , discussing the role of blogs, show blogging technique and design as well as folks who can help you get sources for information and basic grammar. The event will be held on Saturday April 23rd, from 1 - 3 pm in downtown Lexington. Registration is limited and the cost is $5. For more information contact Brian Goettl at goettllaw@earthlink.net.
Thursday, April 14, 2005
Driving Them Crazy
Lexington Herald Leader columnist Cheryl Truman has caught the "Who's the Next Mayor?" fever and it is making her get a little goofy. She cites an LBAR survey that names a few possible candidates. She speculates on one of them:
"Who is John Hampton?" she asks. "He's the young Republican who ran a well-financed campaign against longtime state Rep. Ruth Ann Palumbo last year -- and came within a hair of unseating her. He could become the Scott Crosbie of the next mayor's race: the young conservative with the big war chest."
Go fish, Cheryl. Supporters of the status quo in Lexington can only hope for a repeat of the 2002 race that was close but gave power to the current mayor.
Guessing who will be the conservative candidate for Lexington mayor next year will become a major distraction for all of Leftington, but they won't figure it out until it is time for them to know.
But watching them get worked up about it will be fun.
"Who is John Hampton?" she asks. "He's the young Republican who ran a well-financed campaign against longtime state Rep. Ruth Ann Palumbo last year -- and came within a hair of unseating her. He could become the Scott Crosbie of the next mayor's race: the young conservative with the big war chest."
Go fish, Cheryl. Supporters of the status quo in Lexington can only hope for a repeat of the 2002 race that was close but gave power to the current mayor.
Guessing who will be the conservative candidate for Lexington mayor next year will become a major distraction for all of Leftington, but they won't figure it out until it is time for them to know.
But watching them get worked up about it will be fun.
Wednesday, April 13, 2005
Flip-Flop: Chandler Changes Tax Vote
As he did twice last year, Rep. Ben Chandler voted to kill a good tax bill and then voted for it. Given his bad voting record, it is noteworthy that he is totally ineffective in Congress and has to go on expensive taxpayer-paid junkets to Iceland to get attention.
Tax and Spend Liberal
Rep. Ben Chandler voted today against making the repeal of the Death Tax permanent. You don't need Grover Norquist to tell you that would be a tax increase.
Kentucky Progress Radio
For the latest on all this and more, tune in to 1340 WEKY in Richmond, 1550 WIRV in Irvine, and 1500 WKXO in Berea this afternoon at 5:15 pm to join me in an hour-long discussion of the news.
Julian Carroll: The Party's Over?
Sen. Julian Carroll (D-Frankfort) this morning said that liberals should leave the Democratic Party and form their own party. He said this as a guest on the Sue Wylie show on 590 WVLK in Lexington.
He then added that "Hillary Clinton would be a disaster" as the Democrat nominee for President. Given that she is favorite for the party's nomination at this point, we are left with a problem understanding his comments. Who does he not want in the Democratic Party, liberals or "conservative Democrats?"
Dem Approach to KAPT Mirrors Social Security
Both KAPT and Social Security will require increasing amounts of taxpayer dollars if the status quo holds in Frankfort and Washington D.C., as key Democrats insist they prefer.
The key similarity between the two programs centers around the programs' "Trust Funds."
This is where the political obfuscation from reform opponents depends most heavily on ignorance and apathy among the general public.
KAPT's operating losses are backed by a "Fund" of abandoned property previously sold by the state of Kentucky. The problem, as we established here yesterday, is that the money in this "Fund" has already been spent. To replenish that account, the state needs additional taxpayer dollars. That is where the $13.7 million came from when Jonathan Miller, as state Treasurer authorized his raid on the General Fund on December 1, 2004. Despite the overwhelming and irrefutable evidence, he continues to try to confuse people with statements like this one still on his website. That debunked press release claimed that Senate Republicans were taking Miller's millions to build a basketball gym for UK.
By the same token, Social Security's Trust Fund has been spent and will have to be replaced with the dreaded "transition costs" of reform opponents whether or not reform is implemented. The choice is simple: we can bury our heads in the sand and hope for the best or shut down KAPT to limit future losses and change Social Security to head off fiscal disaster. Republicans need rational Democrats to step forward and help with these problems. Who will step forward?
The key similarity between the two programs centers around the programs' "Trust Funds."
This is where the political obfuscation from reform opponents depends most heavily on ignorance and apathy among the general public.
KAPT's operating losses are backed by a "Fund" of abandoned property previously sold by the state of Kentucky. The problem, as we established here yesterday, is that the money in this "Fund" has already been spent. To replenish that account, the state needs additional taxpayer dollars. That is where the $13.7 million came from when Jonathan Miller, as state Treasurer authorized his raid on the General Fund on December 1, 2004. Despite the overwhelming and irrefutable evidence, he continues to try to confuse people with statements like this one still on his website. That debunked press release claimed that Senate Republicans were taking Miller's millions to build a basketball gym for UK.
By the same token, Social Security's Trust Fund has been spent and will have to be replaced with the dreaded "transition costs" of reform opponents whether or not reform is implemented. The choice is simple: we can bury our heads in the sand and hope for the best or shut down KAPT to limit future losses and change Social Security to head off fiscal disaster. Republicans need rational Democrats to step forward and help with these problems. Who will step forward?
Tuesday, April 12, 2005
Ineffective at Home? Move to Europe!
Interviewed by an Associated Press reporter recently at a swank Reyjkavik hotel, Congressman Ben Chandler said that U.S. national security is improved by taxpayers sending him to Iceland.
"I think Americans have, for quite some time, underestimated the importance of our relations with other countries and how that translates into the security of the United States of America," Chandler said.
Chandler(D-Iceland) was picked to serve as a delegate to the NATO Parliamentary Assembly by House Minority Leader Nancy Pelosi(D-San Francisco). Both Democrats have been very outspoken in their opposition to America's national defense efforts.
"I think Americans have, for quite some time, underestimated the importance of our relations with other countries and how that translates into the security of the United States of America," Chandler said.
Chandler(D-Iceland) was picked to serve as a delegate to the NATO Parliamentary Assembly by House Minority Leader Nancy Pelosi(D-San Francisco). Both Democrats have been very outspoken in their opposition to America's national defense efforts.
Monday, April 11, 2005
KAPT Scandal Worsens: No money in "Trust Fund"
The much beleaguered KAPT program has been losing money and drawing down the value of the little understood "Unclaimed Property Fund" for several years, but that is not news. What is alarming is how bad the situation has become.
One phone call to the Kentucky Finance and Administration Cabinet yielded some very interesting numbers. Here's how the phone call went with spokeswoman Jill Midkiff:
KP: What is the value of the Unclaimed Property held by the state of Kentucky?
JM: As of last Friday the account for abandoned property held $118,695,719.00.
KP: That is significantly less than the $150 million Jonathan Miller insists is in there. How could there be such a discrepancy?
JM: I couldn't speculate.
KP: Does this $118 million represent actual dollars in a bank account or has the money already been spent and this is just a number on a balance sheet?
JM: It's a bookkeeping mechanism. The controller's office calls them "book dollars."
So for accuracy's sake, the fund that Jonathan Miller says backs up the controversial KAPT program has NO VALUE. To place value in it, General Fund dollars must be used. That is what happened on December 1, 2004 when KAPT raided the General Fund of $13.7 million dollars. That is what will have to happen to the tune of $50 million by 2020 according to the actuarial report. This settles it. The controversy is over. The 9000 contract holders must be made whole, but to continue the program and open the state to further losses makes absolutely no sense. The pending lawsuit is the work of Treasurer Jonathan Miller and Attorney General Greg Stumbo. Every citizen of the state should urge the Attorney General to end this lawsuit and let this money loser die.
One phone call to the Kentucky Finance and Administration Cabinet yielded some very interesting numbers. Here's how the phone call went with spokeswoman Jill Midkiff:
KP: What is the value of the Unclaimed Property held by the state of Kentucky?
JM: As of last Friday the account for abandoned property held $118,695,719.00.
KP: That is significantly less than the $150 million Jonathan Miller insists is in there. How could there be such a discrepancy?
JM: I couldn't speculate.
KP: Does this $118 million represent actual dollars in a bank account or has the money already been spent and this is just a number on a balance sheet?
JM: It's a bookkeeping mechanism. The controller's office calls them "book dollars."
So for accuracy's sake, the fund that Jonathan Miller says backs up the controversial KAPT program has NO VALUE. To place value in it, General Fund dollars must be used. That is what happened on December 1, 2004 when KAPT raided the General Fund of $13.7 million dollars. That is what will have to happen to the tune of $50 million by 2020 according to the actuarial report. This settles it. The controversy is over. The 9000 contract holders must be made whole, but to continue the program and open the state to further losses makes absolutely no sense. The pending lawsuit is the work of Treasurer Jonathan Miller and Attorney General Greg Stumbo. Every citizen of the state should urge the Attorney General to end this lawsuit and let this money loser die.
State Media Doesn't Get KAPT Story Right
After a temporary injunction ruling Friday, Kentucky mainstream media outlets continue their poor coverage of the KAPT scandal. Broadcast reports spread the bogus concept that the General Assembly "raided" money from KAPT and the program's contract holders and missed the fact that the ruling was a temporary one. Most importantly -- and this is the concept that no one in mainstream media land has bothered to look at -- the true value of the unclaimed property fund continues to be grossly exaggerated by Jonathan Miller with no scrutiny.
The focal point of the argument is how much money backs up the money-losing KAPT program. Miller insists that it is around $150 million. This is an extremely liberal valuation that someone should challenge the Treasurer to prove. The fact of the matter is that he wouldn't fare very well under such a challenge. And when "Unclaimed Property" comes up short in paying off program losses, KAPT comes after taxpayers. That is a hit the General Assembly is trying to cushion and one that, apparently, Miller and the mainstream media want you to face.
The focal point of the argument is how much money backs up the money-losing KAPT program. Miller insists that it is around $150 million. This is an extremely liberal valuation that someone should challenge the Treasurer to prove. The fact of the matter is that he wouldn't fare very well under such a challenge. And when "Unclaimed Property" comes up short in paying off program losses, KAPT comes after taxpayers. That is a hit the General Assembly is trying to cushion and one that, apparently, Miller and the mainstream media want you to face.
Sunday, April 10, 2005
Lexington Mayor 2006 Update
Speculation continues to run rampant about what conservative candidate will come forward for the quickly approaching 2006 elections.
There are indications that an alternative candidate is close to making a decision, but I still say that Warren Rogers is the man for the job.
The word from the Sixth district GOP Lincoln Day Dinner is that he has not ruled it out. Stay tuned...
There are indications that an alternative candidate is close to making a decision, but I still say that Warren Rogers is the man for the job.
The word from the Sixth district GOP Lincoln Day Dinner is that he has not ruled it out. Stay tuned...
Friday, April 08, 2005
If You Hate Republicans...
You are really going to hate this: Kentucky Republican Voice, the biggest website for Republicans in the state, is now a BLOG.
Schiavo Redux: At Ease, Soldier
Reports are going around on the internet about an elderly Lagrange, Georgia woman who is being starved to death by her family despite the fact that she is not terminally ill, or in any kind of vegetative state. I spoke to Pam Shivers of Georgia Right to Life and she informed me that a court order has restored the woman's food and water. Right to Life is monitoring the case and, for now, the call to arms isn't necessary.
Given the quick reaction, though, heaven help the next person who decides to get rid of a relative a la Terri Schiavo.
Given the quick reaction, though, heaven help the next person who decides to get rid of a relative a la Terri Schiavo.
Worse: Media Distortions on Social Security
Media bias is the most insidious when it is subtle. If I say George W. Bush, our idiot president, that is much less harmful than if I George W. Bush, whose policies the bipartisan AARP has deemed harmful to poor seniors. The first is a personal slur that anyone would notice. The second would be noticed only by those who realize there is little "bipartisan" sentiment in the liberal AARP organization.
More insidious is the bias shown in an AP article printed in the Courier Journal this morning that states, without attribution, that President Bush offered a plan to Congress that would lower the Social Security payments for everyone under 55.
From the Article:------------------------------
Bush urged Congress in January to approve legislation that would create permanent financial solvency for Social Security, and include an option for younger workers to set aside a portion of their payroll taxes for personal investment. In exchange, all workers under 55 would receive lower benefits than they are now guaranteed under the law.
-------------------------------
What the reporter is referring to is a technical change to benefits that would cause them to not rise as fast over time as they do now. President Bush has not made this, or any other, proposal and to suggest that he did would be, sad to say, a lie.
More insidious is the bias shown in an AP article printed in the Courier Journal this morning that states, without attribution, that President Bush offered a plan to Congress that would lower the Social Security payments for everyone under 55.
From the Article:------------------------------
Bush urged Congress in January to approve legislation that would create permanent financial solvency for Social Security, and include an option for younger workers to set aside a portion of their payroll taxes for personal investment. In exchange, all workers under 55 would receive lower benefits than they are now guaranteed under the law.
-------------------------------
What the reporter is referring to is a technical change to benefits that would cause them to not rise as fast over time as they do now. President Bush has not made this, or any other, proposal and to suggest that he did would be, sad to say, a lie.
Thursday, April 07, 2005
Chandler Changes Mind on Financial Literacy?
After several weeks of campaigning against investment in U.S. financial markets and insisting that the looming insolvency of Social Security should be solved by enormous tax increases, Rep. Ben Chandler (D-KY) voted yesterday to create a national Financial Literacy Month.
The problem with this vote is that Chandler's campaign against Social Security reform depends heavily on a lack of understanding of the financial concepts involved.
The problem with this vote is that Chandler's campaign against Social Security reform depends heavily on a lack of understanding of the financial concepts involved.
KAPT Scandal Update
The preliminary court ruling today didn't grant AG Greg Stumbo's request to allow future raids on the taxpayer funds by KAPT but it did allow his effort to prevent the General Assembly from recovering the money that was confiscated last summer. So the KAPT scandal heads to court.
KEPT Men In Court
Attorney General Greg Stumbo has received a temporary injuction this afternoon preventing taxpayers of Kentucky from receiving back the $13.7 million confiscated by state Treasurer Jonathan Miller last summer to prop up the money-losing KAPT program.
A statement from the Franklin county Circuit Court said that the TRO was granted "in part" and no further details were immediately available.
AG Stumbo and Miller are doubtless gleeful that they get to keep your money for now.
A statement from the Franklin county Circuit Court said that the TRO was granted "in part" and no further details were immediately available.
AG Stumbo and Miller are doubtless gleeful that they get to keep your money for now.
KEPT Men: They Play, You Pay
Kentucky's Extravagant Politicians Tax (KEPT) continues to pile up on the backs of Kentuckians as Attorney General Greg Stumbo and Treasurer Jonathan Miller go to court today at 2:00 pm to raid Kentucky's General Fund of $13.7 million. They say they want the money to prop up the money-losing KAPT program.
The KEPT men claim in a court document that Kentucky's citizens will suffer "immediate and irreparable injury" unless they are allowed to confiscate these millions of dollars. Meanwhile, we continue to pay the legal expenses for the KEPT Men to run their flim-flam operation to support their political aspirations. Stay tuned for details.
The KEPT men claim in a court document that Kentucky's citizens will suffer "immediate and irreparable injury" unless they are allowed to confiscate these millions of dollars. Meanwhile, we continue to pay the legal expenses for the KEPT Men to run their flim-flam operation to support their political aspirations. Stay tuned for details.
CORRECTION
Well, it turns out that ABC News was partially right. The Terri Schiavo "GOP Talking Points Memo" turns out to have been written by the legal counsel to Sen. Mel Martinez (R-FL). Brian Darling was the author of the very stupid memo and deserves to be thrown under the bus for his role in this fiasco.
In the aftermath of this story that became a story because a stupid Republican staffer lied, we can only hope that a lesson is learned. As one who jumped on this story and ripped Harry Reid, who I preferred to have as the villian in all this, I apologize. Similarly, all the Democrats who lined up to rally behind Bill Clinton when the media was "lying" about his relationship with an intern named Monica should be understanding, but won't be. That's just politics.
After years of watching top liberals stretch truth to oppose the President on taxes, the environment, labor issues, national defense, and entitlement reform, etc. we trusted the GOP Senators when they said they didn't write the poorly crafted memo. Those Republican Senators trusted their staffers. One staffer lied. That's the story. Again, apologies to liberal media outlet ABC News and apologies to obstructionist Sen. Harry Reid.
But don't get the big head, boys. We have a lot of serious work to do.
In the aftermath of this story that became a story because a stupid Republican staffer lied, we can only hope that a lesson is learned. As one who jumped on this story and ripped Harry Reid, who I preferred to have as the villian in all this, I apologize. Similarly, all the Democrats who lined up to rally behind Bill Clinton when the media was "lying" about his relationship with an intern named Monica should be understanding, but won't be. That's just politics.
After years of watching top liberals stretch truth to oppose the President on taxes, the environment, labor issues, national defense, and entitlement reform, etc. we trusted the GOP Senators when they said they didn't write the poorly crafted memo. Those Republican Senators trusted their staffers. One staffer lied. That's the story. Again, apologies to liberal media outlet ABC News and apologies to obstructionist Sen. Harry Reid.
But don't get the big head, boys. We have a lot of serious work to do.
Wednesday, April 06, 2005
Campaign 2006: Target Jody Richards
The bitter obstructionism plaguing Frankfort ripped a large hole in the Democratic Party's House majority in 2004 when voters handed Kentucky's Republican minority a net of seven new seats in the lower chamber. Rudderless Democrats nearly toppled their Speaker, then passed their long-overdue budget in this year's session.
GOP strategists have long considered the House a two cycle opportunity for creating a majority. Democrats cooperated nicely by childishly refusing budget meetings and shutting down even the simplest of Governor Fletcher's re-organization bills. Several times during the 2004 election season, observers wondered how House Speaker Jody Richards (who didn't face opposition in 2004) would fare in an electoral challenge given his role in the imploding Democrats' declining support with voters.
They will soon have an answer.
Bowling Green Attorney JB Hines has filed his intention to run against Jody Richards in the Novermber 2006 election. Hines brings a wealth of knowledge to his bid for the House. As a young man, he worked in Japan teaching English. He has a masters degree in Public Administration from Western Kentucky University in addition to his law degree from University of Louisville. Hines serves on the Government Relations Committee of the Bowling Green Chamber of Commerce and practices law with the firm Travelsted and Crocker in Bowling Green.
Mr. Hines will be my guest this afternoon on WEKY 1340 AM to discuss his candidacy and it's statewide implications. The program airs from 5:15 pm to 6:15 pm.
GOP strategists have long considered the House a two cycle opportunity for creating a majority. Democrats cooperated nicely by childishly refusing budget meetings and shutting down even the simplest of Governor Fletcher's re-organization bills. Several times during the 2004 election season, observers wondered how House Speaker Jody Richards (who didn't face opposition in 2004) would fare in an electoral challenge given his role in the imploding Democrats' declining support with voters.
They will soon have an answer.
Bowling Green Attorney JB Hines has filed his intention to run against Jody Richards in the Novermber 2006 election. Hines brings a wealth of knowledge to his bid for the House. As a young man, he worked in Japan teaching English. He has a masters degree in Public Administration from Western Kentucky University in addition to his law degree from University of Louisville. Hines serves on the Government Relations Committee of the Bowling Green Chamber of Commerce and practices law with the firm Travelsted and Crocker in Bowling Green.
Mr. Hines will be my guest this afternoon on WEKY 1340 AM to discuss his candidacy and it's statewide implications. The program airs from 5:15 pm to 6:15 pm.
Fake Memo Story: Dead Tree Media Catching Up
ABC News continues to post its fake "GOP Talking Points Memo" contrived to embarrass Republicans over their efforts to save Terri Schiavo, but the search for truth isn't going away. The Washington Times is the latest to pick up the trail and it seems to lead to Senate Minority Leader Harry Reid. We will keep you posted, but suspect that this story will soon take on a life of its own.
Tuesday, April 05, 2005
WFA: Saving $100 Million From the Herald Leader
We mentioned the Lexington Herald Leader editorial from Saturday in which they accused the General Assembly of "raiding" Big Education of $13.7 million (KAPT) and $82 million (The Student Loan People). The facts are rolling in, and it doesn't look good for The Herald Leader. The KAPT situation is well documented; even the Courier Journal spanked Jonathan Miller and Greg Stumbo for their grandstanding and hypocrisy. The story behind the $82 million is more of the same, but with a twist.
On its face, this bogus "raid" is somewhat less controversial than the KAPT scandal. The $82 million represents redeemed bonds that the Kentucky Higher Education Student Loan Corporation (KHESLC) requested for the purpose of college loans to low income people with no plans to go to college (yes, you read that right). The request was denied. End of controversy. The Governor denied the request by allocating the $82 million elsewhere in his budget proposal and the House and Senate rightly agreed.
But here is the twist: how absurd is it that the Herald Leader and the (KHESLC) want to squander $82 million dollars on student loans to people who don't plan to go to college? The desire to help more low income people attend college is laudable, but let's be serious. We don't make a difference by doling out more student loans. There are ample financing opportunities (the least preferable are loans, for heaven's sake!) for higher education. The difference should be made on the front end with young children by implementing higher standards. And that doesn't cost any money. In a time when huge numbers of Kentucky high school graduates must take remedial courses to get up to speed in college, our problem is certainly not that we don't have enough student loan money. The Education Industrial Complex only understands how to pander and beg for more money without ever demonstrating value for that money. Governor Fletcher deserves praise for saving this money.
On its face, this bogus "raid" is somewhat less controversial than the KAPT scandal. The $82 million represents redeemed bonds that the Kentucky Higher Education Student Loan Corporation (KHESLC) requested for the purpose of college loans to low income people with no plans to go to college (yes, you read that right). The request was denied. End of controversy. The Governor denied the request by allocating the $82 million elsewhere in his budget proposal and the House and Senate rightly agreed.
But here is the twist: how absurd is it that the Herald Leader and the (KHESLC) want to squander $82 million dollars on student loans to people who don't plan to go to college? The desire to help more low income people attend college is laudable, but let's be serious. We don't make a difference by doling out more student loans. There are ample financing opportunities (the least preferable are loans, for heaven's sake!) for higher education. The difference should be made on the front end with young children by implementing higher standards. And that doesn't cost any money. In a time when huge numbers of Kentucky high school graduates must take remedial courses to get up to speed in college, our problem is certainly not that we don't have enough student loan money. The Education Industrial Complex only understands how to pander and beg for more money without ever demonstrating value for that money. Governor Fletcher deserves praise for saving this money.
Monday, April 04, 2005
GOP To Start Playing Hardball?
Here is an interesting article that suggests midterm Congressional elections could be a knockout for Republicans next year. The premise is that Bush won 41 House districts that are held by Democrats; the conclusion that Republicans would do well to focus on those. Given that obstructionism in the Senate is shaping up to be a key issue for or against Democrats (heaven help them if they use Harry Reid's nuclear option on the Senate), the guess here is that Dems have a lot to lose if Social Security reform breaks the logjam and passes despite their best efforts. While Bush has played rope-a-dope, House Democrats have made outlandish claims in support of the unsustainable status quo. If the President comes off the ropes and sticks it to reform opponents, they could well be seeing stars for years to come.
More Controversy With State Education Dollars
The Lexington Herald Leader on Saturday April 2 accused the General Assembly of "raiding" the Kentucky Higher Education Student Loan Corporation of $82 million in addition to the $13.7 million it claims was "raided" from KAPT. Given that we have already established that the KAPT scandal was, if anything, a raid on the General Fund by KAPT, we were suspicious of this new, much larger, figure. Executive Director Joe McCormick of the Kentucky Higher Education Authority stated that federal money directed toward the KHESLC in the amount of $16 million in the current biennium and $66 million in the next was shifted away from the KHESLC. Further questioning, however, got him started in on how KAPT has never used general fund dollars (which it certainly has) so the interview was ended. The surprising amount of difficulty in locating supporting evidence for this claim of "raiding" is most curious. We will keep you posted as this mystery unfolds.
Kentucky Focus on Kentucky Progress
Did the interview, got the t-shirt: now you can listen to me being interviewed about the state budget and Social Security reform. Here is the link.
Lexington Native, Episcopal Bishop Calls Jesus Gay
Lexington (Ky) native and the first openly homosexual Episcopal Bishop strongly suggested to a Massachusetts congregation that Jesus Christ may have been a homosexual.
And they say conservatives are overreacting to the "homosexual agenda."
And they say conservatives are overreacting to the "homosexual agenda."
Sunday, April 03, 2005
Dick Morris and George Bush are Both Wrong
Political Commentator Dick Morris, famous first for letting his girlfriend-for-hire talk to President Clinton on the telephone and more recently for predicting early on that President Bush would win re-election, has turned in the worst column we have seen him write. Unfortunately, his advice to Bush on Social Security reform is only necessary because the President botched the explanation of Personal Savings Accounts (PSA). America understands there is a looming crisis with outflows set to exceed inflows in less than a decade. Outside partisan roadblocking, Americans understand that something must be done but there has been no leadership on what, how, or why from the White House or, obviously, from the opposition Democrats who were for Social Security reform before they were against it.
And that is George Bush's fault. He missed the key point of the PSA (that they will solve the funding problems of Social Security) and the opposition is more than happy to hang this around his neck. If he is going to be hassled for promoting free enterprise, he might as well promote it correctly.
PSA's save Social Security from insolvency in three steps: stopping the annual raid on surpluses while we still have them, letting individual choice create better returns to bring the system into balance, and reducing the need for taxes to fund future Social Security liabilities.
Stopping the annual raids: Payroll tax dollars meant for the Social Security Trust Fund are currently dumped into the General Fund and spent immediately. Creating optional PSA's would necessitate those dollars not needed for paying current liabilities to be placed in the PSA's. So honest accounting is advanced immediately by drying up the slush fund. When the program runs out of annual surpluses and starts borrowing to replace and then dole out the previously- raided Trust Fund, the government will already be weaned off that "funding source" and the transition will be somewhat easier than if we wait and go cold turkey when the inflows of payroll tax dollars become insufficient to meet current needs. This "transition" will happen under virtually any scenario and difficult choices will have to be made anyway. A little restraint now will make that an easier price to pay than it would be with further delay.
Individual Choice = Better Returns: PSA's will give every American the right to become a stakeholder in the future of Social Security. If you choose to fund a PSA with your payroll tax dollars, then the formula for your future benefits can be reduced by what you aren't contributing to the general pool. Compounded gains in your PSA over time will have little difficulty exceeding the paltry returns in the current system several times over. As a result, PSA holders will have less dependence on general payroll tax funds when they start drawing benefits. This leaves more money for those who need it (disabled, survivors, etc.). This key point is missed in virtually all discussion of reform and the President's opponents are making the most of the oversight. Meanwhile, if the misunderstanding is not corrected we all stand to lose.
Reduction of Future Payroll Taxes: As greater success is witnessed among those with PSA's, the need for payroll taxes to fund benefits will diminish. That is what the major opponents to reform are afraid of. What is President Bush's excuse?
And that is George Bush's fault. He missed the key point of the PSA (that they will solve the funding problems of Social Security) and the opposition is more than happy to hang this around his neck. If he is going to be hassled for promoting free enterprise, he might as well promote it correctly.
PSA's save Social Security from insolvency in three steps: stopping the annual raid on surpluses while we still have them, letting individual choice create better returns to bring the system into balance, and reducing the need for taxes to fund future Social Security liabilities.
Stopping the annual raids: Payroll tax dollars meant for the Social Security Trust Fund are currently dumped into the General Fund and spent immediately. Creating optional PSA's would necessitate those dollars not needed for paying current liabilities to be placed in the PSA's. So honest accounting is advanced immediately by drying up the slush fund. When the program runs out of annual surpluses and starts borrowing to replace and then dole out the previously- raided Trust Fund, the government will already be weaned off that "funding source" and the transition will be somewhat easier than if we wait and go cold turkey when the inflows of payroll tax dollars become insufficient to meet current needs. This "transition" will happen under virtually any scenario and difficult choices will have to be made anyway. A little restraint now will make that an easier price to pay than it would be with further delay.
Individual Choice = Better Returns: PSA's will give every American the right to become a stakeholder in the future of Social Security. If you choose to fund a PSA with your payroll tax dollars, then the formula for your future benefits can be reduced by what you aren't contributing to the general pool. Compounded gains in your PSA over time will have little difficulty exceeding the paltry returns in the current system several times over. As a result, PSA holders will have less dependence on general payroll tax funds when they start drawing benefits. This leaves more money for those who need it (disabled, survivors, etc.). This key point is missed in virtually all discussion of reform and the President's opponents are making the most of the oversight. Meanwhile, if the misunderstanding is not corrected we all stand to lose.
Reduction of Future Payroll Taxes: As greater success is witnessed among those with PSA's, the need for payroll taxes to fund benefits will diminish. That is what the major opponents to reform are afraid of. What is President Bush's excuse?
Saturday, April 02, 2005
Reform Wars: AARP v. USA Next
AARP has been one of the most successful marketing organizations in the history of the world. It has also been very active in promoting liberal causes like gun control, tax increases, universal government healthcare, homosexual marriage, and keeping the death tax, and, interestingly, perpetuating the double taxation of Social Security benefits for senior citizens.
Now it's leaders want to keep younger Americans from having the opportunity to have fully-funded Social Security in the future without massive tax increases now. As Democrat members of Congress spread out through the country scaring people about Social Security reform, they often have an AARP representative in tow. AARP receives tens of millions of taxpayer funded federal grants each year. So you don't have to wonder who is paying for their politic activism: you are!
USA Next is trying to spread the word about why AARP is so active against reform and they have the battle scars to prove it. Molly Ivins and Maureen Dowd hate USA Next. Get the picture?
This will be a titanic struggle and a very interesting sideline fight in the reform wars. Conservative versus Liberal organizations in a blood feud. Charlie Jarvis of USA Next says AARP bears primary responsibility for Social Security's problems. AARP spokesman Steve Hahn counters "our members still view AARP as the most credible source when it comes to Social Security."
Now it's leaders want to keep younger Americans from having the opportunity to have fully-funded Social Security in the future without massive tax increases now. As Democrat members of Congress spread out through the country scaring people about Social Security reform, they often have an AARP representative in tow. AARP receives tens of millions of taxpayer funded federal grants each year. So you don't have to wonder who is paying for their politic activism: you are!
USA Next is trying to spread the word about why AARP is so active against reform and they have the battle scars to prove it. Molly Ivins and Maureen Dowd hate USA Next. Get the picture?
This will be a titanic struggle and a very interesting sideline fight in the reform wars. Conservative versus Liberal organizations in a blood feud. Charlie Jarvis of USA Next says AARP bears primary responsibility for Social Security's problems. AARP spokesman Steve Hahn counters "our members still view AARP as the most credible source when it comes to Social Security."
Friday, April 01, 2005
Unions Stumping Against Social Security Reform
The American Federation of State, County, and Municipal Employees (AFSCME) really doesn't want workers to have the ability to invest in Social Security Private Savings Accounts. The reason for their reticence is really quite simple: successful change in Social Security might lead reformers to eye the disastrous public pension system that is screaming for improvement.
Personal accounts fix several problems. Shifting those payroll dollars (and their corresponding future payout liability) out of the system creates a relatively pain-free (for the government) lock box that prevents raiding the dwindling Trust Fund surpluses and compounding the problems in the future. Decades down the road rather than facing huge tax increases and/or benefit cuts we would be discussing lowering payroll tax rates because the majority of Social Security money would be coming from well-funded personal accounts. This is what the reform opponents are scared of when they talk about "dismantling the system." If we can limit government in this pension program, we can similarly reform the public pension funds and the big unions would lose much of their power over their members and our tax dollars. The debate is no more complicated than that.
The Department of Labor has been asked to investigate allegedly illegal activities by the big unions in their campaigns to stifle reform. If they are compelled to stop their intimidation tactics, we will be able to have a real discussion about real reform. We remain optimistic.
Personal accounts fix several problems. Shifting those payroll dollars (and their corresponding future payout liability) out of the system creates a relatively pain-free (for the government) lock box that prevents raiding the dwindling Trust Fund surpluses and compounding the problems in the future. Decades down the road rather than facing huge tax increases and/or benefit cuts we would be discussing lowering payroll tax rates because the majority of Social Security money would be coming from well-funded personal accounts. This is what the reform opponents are scared of when they talk about "dismantling the system." If we can limit government in this pension program, we can similarly reform the public pension funds and the big unions would lose much of their power over their members and our tax dollars. The debate is no more complicated than that.
The Department of Labor has been asked to investigate allegedly illegal activities by the big unions in their campaigns to stifle reform. If they are compelled to stop their intimidation tactics, we will be able to have a real discussion about real reform. We remain optimistic.
Next Up: Tax Reform
George Will discusses the Fair Tax proposal in his syndicated column. The inevitable media freakout against this over the weekend will be a sight to behold.
Kentucky Progress on Weekend Radio
Tune in to Caleb Brown's Kentucky Focus program this Sunday for his interview with yours truly. We will be talking about the state budget and Social Security. By the way, Personal accounts will save Social Security. Raising taxes or cutting benefits won't fix the solvency problem long term.
Now that the President has gotten across the fact that there is a problem that must be addressed, look for him to turn the focus to the need to make Social Security a better deal for all Americans.
Now that the President has gotten across the fact that there is a problem that must be addressed, look for him to turn the focus to the need to make Social Security a better deal for all Americans.
KEPT Men: Day Two
Kentucky's Extravagant Politicians Tax got a much-anticipated boost from the Lexington Herald Leader this morning. KEPT men Jonathan Miller and Greg Stumbo need the help. They are using taxpayer dollars to sue the General Assembly for trying to save, um, taxpayer dollars by shutting down the money-losing KAPT entitlement program.
The Herald Leader abuses logic to suggest that if Republicans want to have personal accounts associated with Social Security that they must support the "investment" of taxpayer dollars to prop up this particular state program whose returns have consistently under-performed college tuition inflation. Armed only with such weak arguments, Miller and Stumbo deserve to have their case thrown out of court quickly. And with Miller's one "accomplishment" in public office exposed for what it is, he deserves to be voted off the island in his next election.
The Herald Leader abuses logic to suggest that if Republicans want to have personal accounts associated with Social Security that they must support the "investment" of taxpayer dollars to prop up this particular state program whose returns have consistently under-performed college tuition inflation. Armed only with such weak arguments, Miller and Stumbo deserve to have their case thrown out of court quickly. And with Miller's one "accomplishment" in public office exposed for what it is, he deserves to be voted off the island in his next election.
Thursday, March 31, 2005
To The Victor Goes The Spoils?
It has been said of warfare that the winning side writes the history. Will that be the case in the Terri Schiavo story? This dreadful, gloating commentary seems to say yes. The writer begins by proclaiming relief at the death of Schiavo and, he hopes, the end of the "political melodrama." Then he proceeds in the very next paragraph to call her "brain dead" -- which of course she wasn't until she was starved to death. Now she is brain dead. Expect to see a lot more of this "see, it isn't so bad now that she is dead, is it? Can't we all just get along and quit acting like a bunch of Bible-thumping wild-eyed pistol wavers?"
And ABC News still has their fake "GOP Talking Points" memo on their website under "Your Government.
And ABC News still has their fake "GOP Talking Points" memo on their website under "Your Government.
Playing Politics
Terri Schiavo is gone and ABC News still has their bogus "GOP Talking Points" memo displayed on their website. Disgraceful.
KEPT Men: Miller and Stumbo Sue, You Pay
Under fire for his misstatements about money-losing "Kentucky's Affordable Prepaid Tuition" program, State Treasurer Jonathan Miller took to the airwaves yesterday to defend his role in a lawsuit over the future of KAPT.
Miller told listeners to WVLK's Kruser & Krew show that he is still upset that bipartisan efforts in the legislature reversed Miller's $13.7 million raid on Kentucky's General Fund and prevented future such raids. This effort survived despite Miller's intense media campaign to justify spending taxpayer dollars endlessly on future KAPT losses.
Miller surely doesn't expect to win his ill-advised lawsuit against the General Assembly. More likely, he expects to keep spinning against the facts of the case and run as a hard-charging battler of the system in his future campaigns. It will be interesting to see how much Miller's silly lawsuit (filed by Attorney General Greg Stumbo) will cost Kentucky's taxpayers.
Call it Kentucky's Extravagant Politicians Tax. KEPT men Miller and Stumbo aren't worried about who pays for this bit of campaigning. We'll keep you posted.
Miller told listeners to WVLK's Kruser & Krew show that he is still upset that bipartisan efforts in the legislature reversed Miller's $13.7 million raid on Kentucky's General Fund and prevented future such raids. This effort survived despite Miller's intense media campaign to justify spending taxpayer dollars endlessly on future KAPT losses.
Miller surely doesn't expect to win his ill-advised lawsuit against the General Assembly. More likely, he expects to keep spinning against the facts of the case and run as a hard-charging battler of the system in his future campaigns. It will be interesting to see how much Miller's silly lawsuit (filed by Attorney General Greg Stumbo) will cost Kentucky's taxpayers.
Call it Kentucky's Extravagant Politicians Tax. KEPT men Miller and Stumbo aren't worried about who pays for this bit of campaigning. We'll keep you posted.
Wednesday, March 30, 2005
Stonewalling on Faked ABC News Memo?
When ABC News reported on March 18 about a so-called "GOP Talking Points Memo" related to Terri Schiavo, skeptical bloggers started searching for evidence of its true source. The Washington Post has picked up the story. Can the media feeding frenzy against ABC News be far behind?
It won't be good for ABC News if their actions can be compared to the CBS News' faked National Guard memo from last fall.
ABC claims "very reliable, multiple sources" in the flap, but stops short of naming any of them. Linda Douglass, the ABC reporter who first brought out the questionable memo is "out of the country."
In Lexington, WTVQ news director Tai Takagashi said of the controversy "It rings a bell, but we haven't been talking about it here."
It won't be good for ABC News if their actions can be compared to the CBS News' faked National Guard memo from last fall.
ABC claims "very reliable, multiple sources" in the flap, but stops short of naming any of them. Linda Douglass, the ABC reporter who first brought out the questionable memo is "out of the country."
In Lexington, WTVQ news director Tai Takagashi said of the controversy "It rings a bell, but we haven't been talking about it here."
Kentucky Progress Radio
Tune in to 1340 AM this afternoon at 5:15 pm for the latest news and comment by yours truly. Call in number is 859-623-1340.
KAPT and Social Security Linkage Ignored
In the search for news by local media outlets, national stories are often mined for a local angle. Such has not been the case, however, with the Kentucky's Affordable Prepaid Tuition scandal that is now headed to court. And that is a shame, because the connection between the disinformation campaign that rages around KAPT here mirrors that of the efforts to let Social Security drown in an obstructionist-led propanda campaign against reform.
While the KAPT scandal involves a money-losing Kentucky ponzi scheme that will result in taxpayer dollars being spent to make up shortfalls, Social Security is a money-losing Federal ponzi scheme that will result in taxpayer dollars being spent to make up shortfalls. Unfunded liabilities plague both programs, as do loud Democrat politicians whose political futures ride on a persistent status quo. In Washington D.C., Democrats believe they can't allow a Republican to correct the structural failings of FDR's legacy and are seemingly willing to say anything to avoid such a result. In Frankfort, Treasurer Jonathan Miller has ignored repeated warnings for years that KAPT won't work for long; but he knows a good political issue when he sees one. So, the reasoning goes on both levels, turning Republican efforts to protect taxpayers against them works if no one pays attention to the details and the media plays along. So far this tactic is has effectively slowed reform.
But the tide may be turning.
Miller's ability to persuade Attorney General Greg Stumbo to file suit against the General Assembly for stopping the KAPT raid on the General Fund (under the bizarre claim that the opposite happened) is interesting. Their position is untenable and they must know it. General tax dollars were never intended to pay for bad "investment schemes." Much like the Harry Reid claim that a Social Security that can pay 70% of benefits before digging into taxpayer pockets isn't bankrupt, House Budget Chairman Harry Moberly declares KAPT "safe" by explaining that "No General Assembly is going to leave current (KAPT) contract holders in the breach." Translated, this means that Democrats aren't worried about structural problems with these two programs because when the going gets tough they can just raise our taxes. And, unfortunately, Republicans will be able to do little about it when that time comes; hence the efforts at reform now. But you aren't going to see that explained in the news.
Another key point that hasn't been explored in the old media is that the liberals who insist that the same financial markets that can't be trusted to keep Social Security contributions earning more than general wage inflation (which they easily do) can be trusted to keep KAPT contributions earning more than college tuition inflation (which they can't consistently do).
And they say conservatives rely too much on faith.
While the KAPT scandal involves a money-losing Kentucky ponzi scheme that will result in taxpayer dollars being spent to make up shortfalls, Social Security is a money-losing Federal ponzi scheme that will result in taxpayer dollars being spent to make up shortfalls. Unfunded liabilities plague both programs, as do loud Democrat politicians whose political futures ride on a persistent status quo. In Washington D.C., Democrats believe they can't allow a Republican to correct the structural failings of FDR's legacy and are seemingly willing to say anything to avoid such a result. In Frankfort, Treasurer Jonathan Miller has ignored repeated warnings for years that KAPT won't work for long; but he knows a good political issue when he sees one. So, the reasoning goes on both levels, turning Republican efforts to protect taxpayers against them works if no one pays attention to the details and the media plays along. So far this tactic is has effectively slowed reform.
But the tide may be turning.
Miller's ability to persuade Attorney General Greg Stumbo to file suit against the General Assembly for stopping the KAPT raid on the General Fund (under the bizarre claim that the opposite happened) is interesting. Their position is untenable and they must know it. General tax dollars were never intended to pay for bad "investment schemes." Much like the Harry Reid claim that a Social Security that can pay 70% of benefits before digging into taxpayer pockets isn't bankrupt, House Budget Chairman Harry Moberly declares KAPT "safe" by explaining that "No General Assembly is going to leave current (KAPT) contract holders in the breach." Translated, this means that Democrats aren't worried about structural problems with these two programs because when the going gets tough they can just raise our taxes. And, unfortunately, Republicans will be able to do little about it when that time comes; hence the efforts at reform now. But you aren't going to see that explained in the news.
Another key point that hasn't been explored in the old media is that the liberals who insist that the same financial markets that can't be trusted to keep Social Security contributions earning more than general wage inflation (which they easily do) can be trusted to keep KAPT contributions earning more than college tuition inflation (which they can't consistently do).
And they say conservatives rely too much on faith.
Tuesday, March 29, 2005
Professionals in Pajamas
The University of Southern California is hiring a blogger and paying $45,000 for a six month project. The funny thing is that this is listed on JournalismJobs.com. The job requires fluency in Japanese, but the point remains: the vast majority of "real journalists" will never get close to a six figure income. So the next time Joe Schmo at the Daily Fishwrap comes up with another snide remark about bloggers in pajamas, be cool, be calm, and smile.
Our day will come. Soon.
Our day will come. Soon.
Monday, March 28, 2005
Bloggers on Lexington Radio
Tune in to the Dave Baker Show on WLAP 630 AM Tuesday March 29 at 10 AM for a discussion about blogging and the latest issues with bloggers Leland Conway and David Adams. Also available on the internet at www.wlap.com. The call-in number is (859) 280-2287.
Ben Chandler Wants More of Your Money
An emailer to the Jack Pattie Show this morning asked Rep. Ben Chandler, in light of his recent calls for tax increases to avoid dealing with the fundamental problems with Social Security, if he was being dishonest now or in early 2004 when he promised not to support tax increases.
The fact is that raising payroll taxes doesn't address Social Security's unfairness. Further, here is how personal accounts will make the program solvent without tax hikes or benefit cuts.
The fact is that raising payroll taxes doesn't address Social Security's unfairness. Further, here is how personal accounts will make the program solvent without tax hikes or benefit cuts.
Lexington Writer Draws Attention
Kudos to Michele Ferguson, a Lexington Herald Leader Community Columnist, for drawing not one but three letter writers' wrath in Sunday's newspaper. Her writings have been stirring things up for a while. Nice job Michele.
Saturday, March 26, 2005
Faulty Economics Indeed
More evidence that the left is cracking up comes from fellow central Kentucky blogger Bluegrassroots in a post by Brad Clark. Below is the entire post with my corrections in bold.
Faulty Economics: The Myth of an Independent Dollar
The dollar has had its day in the sun. (Bad start. This is highly debatable and nothing in this essay supports such a statement.) Any lingering warmth from the day will soon fade with nightfall. (Soon? Evidence? No, this is just wishful thinking.) In 1980, the United States was the world's strongest creditor; the dollar setting the standard for international currency exchange, and the value of commodities such as oil, gold, and copper. Even today, the dollar is the standard by which international markets determine value, even though twenty-five years later, the United States is the world's leading debtor. (Factoids don't advance your ambitious premise.)
No other nation in the world owes as much money to foreign banks. No other nation in the world has as much consumer debt (consumer debt curtails consumer spending, which is the bulk of America's Gross Domestic Product). Many politicians and businessmen, the ill-informed bastions of a mythological, quasi-Smithian economic model, (name calling. Nice.) hope that the opening of Chinese and Indian markets will foster the expansion of the dollar's power and the democratizing effects of capitalism, (no, they hope to make money through increased production. It's working.) but as China grows in wealth, the more dependent America becomes to its four banks, (this same reasoning in the 1980's would have us a Japanese colony by now) which are controlled by the Chinese government(ominous and xenophobic, but not very relevant). Over fifty percent of all U.S. Treasury securities are owned by Chinese and Japanese banks.(Again, inflammatory rhetoric and fear-mongering factoids don't make good economic analysis by themselves. You need more.)
In all, the U.S. owes almost three trillion dollars to foreign banks. That is twenty-five percent of America's Gross Domestic Product (GDP). The growth rate of America's debt exceeds the growth rate of the nation's GDP. One does not have to have a degree in economics to see that the equation does not equal economic stability for America's future.(Maybe not, but perhaps a little historical perspective would help. See World War Two.)
The dollar is inflated. The Federal Reserve has recently raised interest rates seven times trying to curtail the inflation of the dollar. The Euro is quickly becoming a stable and expansive form of currency for a strong European market(Europhoric talking points, not a realistic appraisal of the European currency. Currency trading strength in the face of dollar trading weakness is not evidence of true stability in the euro. Another highly debatable proposition). U.S. foreign policy, if it continues to engage in costly conflicts with no clear and easily accessible economic benefits, will eventually bankrupt the American homeland (This is no more substantial than a good Dean Scream). The American government will not be able to avoid going further and further into debt. Eventually, domestic programs will have to be cut (i.e. education, healthcare, social welfare). Not to mention that American foreign debt will inevitably rise. Debt to foreign banks is a threat to national security; especially when the banks underwriting the American economy are owned by the Chinese government. (Chinese banks underwriting the American economy? Reading the rest of this vapid essay assures me that you aren't kidding, but this is utterly ridiculous. Production "underwrites" the American economy. Chinese banks may underwrite a part of the U.S. government, but Econ 101 should teach the difference between the government and the economy.)
As confidence in the faultering U.S. economy diminishes, foreign capital will leave in search of more stable markets. Look at Mexico in 1994 (hello NAFTA, hello Zapatistas), Russia in 1998 (transition to capitalism, hello organized crime), or Argentina in 2001 (attractive South American economy, hello civil unrest). (Totally bogus examples.) The attractiveness of a new market open to foreign investment inflates a nation's currency beyond its true value, and the slightest signs of distress see foreign investment fleeing for safer markets (or, more often than not, ones that have yet to show signs of distress). How much more dangerous is the fall of a nation's economy when it has been the cornerstone of a world economy for three quarters of a century?(The prior two sentences add nothing of value to the discussion. The question would be scary, but there is nothing here --or anywhere-- that suggests the "fall" of the American economy.)
If the American bubble pops(made up scenarios and their explosive demise make great science fiction but poor economic discussion) , the structure of international finance will have to be reevaluated. Can America take a backseat role in the world? It has been well over a century since America really needed welfare from other states. My advice: make sure your kids speak a foreign language. (Foreign language instruction is a great idea, but none of the other ideas here hold any water.)
Posted by Brad Clark at 02:19 PM in Politics Permalink Comments (1) TrackBack (0)
Faulty Economics: The Myth of an Independent Dollar
The dollar has had its day in the sun. (Bad start. This is highly debatable and nothing in this essay supports such a statement.) Any lingering warmth from the day will soon fade with nightfall. (Soon? Evidence? No, this is just wishful thinking.) In 1980, the United States was the world's strongest creditor; the dollar setting the standard for international currency exchange, and the value of commodities such as oil, gold, and copper. Even today, the dollar is the standard by which international markets determine value, even though twenty-five years later, the United States is the world's leading debtor. (Factoids don't advance your ambitious premise.)
No other nation in the world owes as much money to foreign banks. No other nation in the world has as much consumer debt (consumer debt curtails consumer spending, which is the bulk of America's Gross Domestic Product). Many politicians and businessmen, the ill-informed bastions of a mythological, quasi-Smithian economic model, (name calling. Nice.) hope that the opening of Chinese and Indian markets will foster the expansion of the dollar's power and the democratizing effects of capitalism, (no, they hope to make money through increased production. It's working.) but as China grows in wealth, the more dependent America becomes to its four banks, (this same reasoning in the 1980's would have us a Japanese colony by now) which are controlled by the Chinese government(ominous and xenophobic, but not very relevant). Over fifty percent of all U.S. Treasury securities are owned by Chinese and Japanese banks.(Again, inflammatory rhetoric and fear-mongering factoids don't make good economic analysis by themselves. You need more.)
In all, the U.S. owes almost three trillion dollars to foreign banks. That is twenty-five percent of America's Gross Domestic Product (GDP). The growth rate of America's debt exceeds the growth rate of the nation's GDP. One does not have to have a degree in economics to see that the equation does not equal economic stability for America's future.(Maybe not, but perhaps a little historical perspective would help. See World War Two.)
The dollar is inflated. The Federal Reserve has recently raised interest rates seven times trying to curtail the inflation of the dollar. The Euro is quickly becoming a stable and expansive form of currency for a strong European market(Europhoric talking points, not a realistic appraisal of the European currency. Currency trading strength in the face of dollar trading weakness is not evidence of true stability in the euro. Another highly debatable proposition). U.S. foreign policy, if it continues to engage in costly conflicts with no clear and easily accessible economic benefits, will eventually bankrupt the American homeland (This is no more substantial than a good Dean Scream). The American government will not be able to avoid going further and further into debt. Eventually, domestic programs will have to be cut (i.e. education, healthcare, social welfare). Not to mention that American foreign debt will inevitably rise. Debt to foreign banks is a threat to national security; especially when the banks underwriting the American economy are owned by the Chinese government. (Chinese banks underwriting the American economy? Reading the rest of this vapid essay assures me that you aren't kidding, but this is utterly ridiculous. Production "underwrites" the American economy. Chinese banks may underwrite a part of the U.S. government, but Econ 101 should teach the difference between the government and the economy.)
As confidence in the faultering U.S. economy diminishes, foreign capital will leave in search of more stable markets. Look at Mexico in 1994 (hello NAFTA, hello Zapatistas), Russia in 1998 (transition to capitalism, hello organized crime), or Argentina in 2001 (attractive South American economy, hello civil unrest). (Totally bogus examples.) The attractiveness of a new market open to foreign investment inflates a nation's currency beyond its true value, and the slightest signs of distress see foreign investment fleeing for safer markets (or, more often than not, ones that have yet to show signs of distress). How much more dangerous is the fall of a nation's economy when it has been the cornerstone of a world economy for three quarters of a century?(The prior two sentences add nothing of value to the discussion. The question would be scary, but there is nothing here --or anywhere-- that suggests the "fall" of the American economy.)
If the American bubble pops(made up scenarios and their explosive demise make great science fiction but poor economic discussion) , the structure of international finance will have to be reevaluated. Can America take a backseat role in the world? It has been well over a century since America really needed welfare from other states. My advice: make sure your kids speak a foreign language. (Foreign language instruction is a great idea, but none of the other ideas here hold any water.)
Posted by Brad Clark at 02:19 PM in Politics Permalink Comments (1) TrackBack (0)
Great Fiscal Policy
Thanks to Jeff Smith for this post about Social Security. ---
The Socialists like Ben Chandler say it's not a retirement fund.
They call it "insurance". What they conveniently leave out of
their claim that it's insurance is that insurance companies have
the ability to pay out claims due to their INVESTMENTS! Hello!
Our Congress, that screws up everything it touches, borrows from
SSI, to fund everything under the sun, and replace our money with
IOU's. Insurance companies INVEST our monies so it grows. They
make huge profits, claim recipients get huge checks, and the system
is solvent.
Again, the private sector proves it can manage anything better than
the public sector. Hello! But woe be unto anyone who even thinks of
touching the holy grail of American socialists, Social Security and
Medicare. You must be a "baby killer" or a "racist" or "Hitler" if you
want to touch SSI. It is broken. What do we do when our car breaks?
We fix it right?
Mario
__________________________________________________
The Socialists like Ben Chandler say it's not a retirement fund.
They call it "insurance". What they conveniently leave out of
their claim that it's insurance is that insurance companies have
the ability to pay out claims due to their INVESTMENTS! Hello!
Our Congress, that screws up everything it touches, borrows from
SSI, to fund everything under the sun, and replace our money with
IOU's. Insurance companies INVEST our monies so it grows. They
make huge profits, claim recipients get huge checks, and the system
is solvent.
Again, the private sector proves it can manage anything better than
the public sector. Hello! But woe be unto anyone who even thinks of
touching the holy grail of American socialists, Social Security and
Medicare. You must be a "baby killer" or a "racist" or "Hitler" if you
want to touch SSI. It is broken. What do we do when our car breaks?
We fix it right?
Mario
__________________________________________________
And he sends along this link that just makes too much sense.
Thursday, March 24, 2005
What a Difference Six Years Makes
Slate had a fairly sober look at Social Security reform in 1998 that makes for a pretty interesting history lesson. What really makes it noteworthy is the partisan crowing in a story this week from the same publication.
Kathy Stein Binge and Purge: Schiavo and Roe v. Wade Out?
The only thing stranger than Kathy Stein's column in the Lexington Herald Leader calling for the murder of Terri Schiavo because some of Kathy's friends were bulimic in the 1970's was her contention yesterday on Sue Wylie's show on 590 WVLK that states' rights should rule supreme on the issue of Terri's life or death. Could Rep. Stein, an ardent pro-abortion activist, have gotten her talking points mixed up? Roe V. Wade prevents states from enacting life and death laws related to abortion. Does Stein want badly enough to give that power back to the states so Terri Schiavo can be starved to death, that she is willing to allow states to prevent the murders of innocent unborn children?
She would, one presumes, claim now that states' rights apply to killing inconvenient sick people while federal law must apply to killing inconvenient unborn children. Who is playing politics now?
She would, one presumes, claim now that states' rights apply to killing inconvenient sick people while federal law must apply to killing inconvenient unborn children. Who is playing politics now?
Wednesday, March 23, 2005
Social Security Reform on an Index Card
Personal Savings Accounts (PSA) are funded just like Social Security benefits. The money comes from payroll taxes. When payroll taxes aren't enough to fund the PSAs and pay benefits, the Social Security Trust Fund will be tapped. Since the SSTF has been embezzled already, that money must come from other revenue sources. Opponents call this borrowing, but the "borrowing" must happen anyway because the Trust Fund is gone. Opponents claim benefits will be cut for all. This is a flat lie. The lie has a source, though. Opponents claim that, as part of reform, benefit growth would be reduced. This reduction is not being seriously considered, wouldn't help anyway, and is just being used to promote fear of change. Over 55? Nothing changes. Don't like change? Fine, opt out if you choose. Don't like stocks? That's okay, choose not to invest your money in them. Don't like the idea of lower and middle income people being able to own some of their Social Security funds to pass on to their children and grandchildren? You must be Ben Chandler.
Tuesday, March 22, 2005
Social Security Showdown
The Bluegrass Institute's Chris Derry will join the newly formed Save Social Security Now to discuss how personal savings accounts will increase national savings, spur the economy, and preserve Social Security.
The Town Hall forum will take place tonight at 5:30 pm at the KU Building in Richmond, Kentucky. The public is invited. Anyone with questions may call David Adams at 859-537-5372.
Reform protestors have flown in Congressman Ben Chandler for an anti-reform rally to draw attention from the Town Hall forum. Any legitimate questions from the protestors will be answered at the forum.
The Town Hall forum will take place tonight at 5:30 pm at the KU Building in Richmond, Kentucky. The public is invited. Anyone with questions may call David Adams at 859-537-5372.
Reform protestors have flown in Congressman Ben Chandler for an anti-reform rally to draw attention from the Town Hall forum. Any legitimate questions from the protestors will be answered at the forum.
2006 Election Season Begins Today
The Kentucky General Assembly wrapped up work late last night as the news was getting around that Speaker Jody Richards will not run for Governor. Attorney General Greg Stumbo still seems to be in the hunt; his statements about gambling keep the pot stirred. Crit Luallen quietly bides her time, despite her very narrow win in 2003. The prediction here is that several House Democrats are mere months away from deciding they would prefer to spend more time with their families rather than run for re-election next year. Last year's crop of first time candidates for the House take note. Also look for Richards to face stiff opposition to his own re-election.
Monday, March 21, 2005
Lexington Mayor: The Search Continues
Still haven't seen a better potential candidate than Warren Rogers come forward. Maybe while the pro-condemnation folks are collecting their signatures on petitions we could follow their lead. How about a Draft Warren petition? We could call the organization LEAD (Lexington Excels at Democracy) and build a true grassroots organization for giving Lexington the great leadership it deserves.
Save Social Security Now!!!
The Social Security "debate" shows clearly what is wrong with Washington D.C. Just as national Democrats fought against tax cuts that boosted the economy from recession (eventually blaming the tax cuts for the recession--someone buy these folks a calendar!) and after caterwalling against the War on Terror as if we started it, they now turn their efforts toward the absurd contention that Social Security is just fine and dandy as it is and we should just leave it alone.
The first baby boomers turn 62 in 2008 and all credible analysts see this as an unsustainable drain on Social Security. When Bill Clinton was POTUS, he said the choice for saving the system was to raise taxes, cut benefits, or invest some of the money privately. In 1999, with the problem more distant than it is now, Senator Harry Reid (D-NV) said "Most of us have no problem taking a small amount of the Social Security proceeds and putting it in the private sector." The only thing that has changed since then is that Harry became Senate Minority leader. Now he seems to think that investment choice would destroy the Republic.
But the fact is that private accounts are all that we need to preserve Social Security. And yes, I know that President Bush seems to disagree. The rationale for private accounts is pretty simple. First, diverting Trust Fund dollars keeps Congress from spending them. That is huge. When Congress takes Social Security Trust Fund dollars and spends them, that money has to eventually be produced all over again to pay off the IOU. That process stops if we stop allowing excess payroll taxes from being spent and replaced with IOU's. Second, giving people the option to gain market returns on their money can't, over any time horizon of five years or more, be worse than what is currently earned in the system. And third, the private accounts will be owned by the people who created them, American individuals. As it is now, the same government officials who want to starve Terri Schiavo so she dies on their schedule will always be hoping you and I die quickly enough to keep their ponzi scheme alive.
The first baby boomers turn 62 in 2008 and all credible analysts see this as an unsustainable drain on Social Security. When Bill Clinton was POTUS, he said the choice for saving the system was to raise taxes, cut benefits, or invest some of the money privately. In 1999, with the problem more distant than it is now, Senator Harry Reid (D-NV) said "Most of us have no problem taking a small amount of the Social Security proceeds and putting it in the private sector." The only thing that has changed since then is that Harry became Senate Minority leader. Now he seems to think that investment choice would destroy the Republic.
But the fact is that private accounts are all that we need to preserve Social Security. And yes, I know that President Bush seems to disagree. The rationale for private accounts is pretty simple. First, diverting Trust Fund dollars keeps Congress from spending them. That is huge. When Congress takes Social Security Trust Fund dollars and spends them, that money has to eventually be produced all over again to pay off the IOU. That process stops if we stop allowing excess payroll taxes from being spent and replaced with IOU's. Second, giving people the option to gain market returns on their money can't, over any time horizon of five years or more, be worse than what is currently earned in the system. And third, the private accounts will be owned by the people who created them, American individuals. As it is now, the same government officials who want to starve Terri Schiavo so she dies on their schedule will always be hoping you and I die quickly enough to keep their ponzi scheme alive.
Friday, March 18, 2005
Save a Liberal, Ride a Polar Bear
This is beautiful. Senator Barbara Boxer is organizing a boycott of every oil company that winds up drilling for oil in ANWR.
Reform Opponents Turn on Each Other
This video clip shows President Bush knocking another Social Security question out of the park, while liberals still claim to be winning on the issue. In fact they are showing the video to each other as if it somehow justifies their obstruction, by pointing out the Bush quote "Personal accounts do not solve the issue" without including his next statement that "Personal accounts will make sure that individual workers get a better deal." The President is initiating the conversation for a permanent solution to unfunded liabilities in entitlement programs and his opponents are playing politics. Come on, guys. You have no credibility when you insist there is no reason to do anything and you still refuse to discuss the issue rationally. Put aside the hatred for President Bush and listen to his words. He is inviting you to help find a solution. Bogus commentary like this from the New York Times doesn't help anything. Read this angry letter from Sen. Joe Lieberman that confirms what the rest of us already knew: the Social Security problem is getting worse while the obstructionists in Congress are playing political games.
Thursday, March 17, 2005
At least he is better than a Socialist!!
The National Taxpayers Union has issued a Report Card for members of Congress and it is no surprise that Rep. Ben Chandler (D-Versailles) earned an "F."
The good news is that Chandler's 14% grade is slightly better than Vermont Socialist Bernie Sanders' 12% and New York neo-con Hillary Clinton (11%).
Sadly, Chandler scored lower than Massachusetts' Sen. Ted Kennedy (15%).
The good news is that Chandler's 14% grade is slightly better than Vermont Socialist Bernie Sanders' 12% and New York neo-con Hillary Clinton (11%).
Sadly, Chandler scored lower than Massachusetts' Sen. Ted Kennedy (15%).
Save Social Security Now Comes To Richmond
A townhall meeting to discuss Social Security reform will be held Tuesday March 22, 2005 at the KU building in downtown Richmond. The meeting will start at 5:30 p.m.
President Bush has pushed for a discussion of how to preserve Social Security for future generations. His efforts have been met with apathy from too many politicians of both parties. Save Social Security Now strives to take the reform effort to the grassroots level. In the belief that citizen activism can overcome political apathy, Save Social Security Now urges elected officials of both parties to put aside personal ambition in favor of the public good. Fixing Social Security now for the benefit of future generations of Americans will take bipartisan cooperation.
Any questions regarding Save Social Security Now may be directed to David Adams at 859-537-5372 or s.dadams@prodigy.net.
President Bush has pushed for a discussion of how to preserve Social Security for future generations. His efforts have been met with apathy from too many politicians of both parties. Save Social Security Now strives to take the reform effort to the grassroots level. In the belief that citizen activism can overcome political apathy, Save Social Security Now urges elected officials of both parties to put aside personal ambition in favor of the public good. Fixing Social Security now for the benefit of future generations of Americans will take bipartisan cooperation.
Any questions regarding Save Social Security Now may be directed to David Adams at 859-537-5372 or s.dadams@prodigy.net.
Wednesday, March 16, 2005
Grover Gives Kentucky A Qualified Thumbs Up
Grover Norquist approves of Kentucky's efforts to reform the Commonwealth's tax code. Sort of.
"It's always better to cut spending and cut taxes, but Kentucky's tax plan is revenue neutral in the short run and cuts corporate taxes," Norquist said. "Kentucky's corporate taxes have been horrifying to businesses. They look at Kentucky and then they go to Tennessee."
Norquist, president of the Washington D.C.-based Americans for Tax Reform, spoke to David Adams on WEKY 1340 AM in Richmond Wednesday evening.
"It's always better to cut spending and cut taxes, but Kentucky's tax plan is revenue neutral in the short run and cuts corporate taxes," Norquist said. "Kentucky's corporate taxes have been horrifying to businesses. They look at Kentucky and then they go to Tennessee."
Norquist, president of the Washington D.C.-based Americans for Tax Reform, spoke to David Adams on WEKY 1340 AM in Richmond Wednesday evening.
Tuesday, March 15, 2005
Chandler Bears Down Against Reform
Congressman Ben Chandler (D-Ky) today announced his plans to share obstructionist talking points with supporters in two central Kentucky towns next week. Chandler has attempted to distract constituents concerned about his ineffectiveness in office by loudly and inaccurately shouting down Social Security reform. The source of his misinformation appears to be leftwing websites with titles like "There is No Crisis" http://www.thereisnocrisis.com/. Chandler will be in Berea on Tuesday and Winchester on Thursday.
Monday, March 14, 2005
Herald Leader Blind To Entitlement Reform
The Lexington Herald Leader used this editorial to call for frank speaking on Social Security and then launched a very predictable talking-point diatribe. This same newspaper who now calls private accounts "market magic" and suggests that they can't work was more than willing to confiscate $13.7 million from Kentucky taxpayers to prop up a money losing KAPT program that uses more than a little hocus pocus to make promises it (and self-proclaimed caretaker Jonathan Miller) can't keep. Our beloved newspaper totally missed entitlement reform when the state Senate voted to stop feeding the KAPT monster. They are missing the boat on Social Security as well.
The left in Kentucky, led by Congressman Ben Chandler, knows that the numbers don't support their side. But they think Kentuckians are so confused by their razzle dazzle that they will support perpetual ponzi schemes in KAPT and Social Security. Go fish...
The left in Kentucky, led by Congressman Ben Chandler, knows that the numbers don't support their side. But they think Kentuckians are so confused by their razzle dazzle that they will support perpetual ponzi schemes in KAPT and Social Security. Go fish...
Thursday, March 10, 2005
Congressmen gone wild: Chandler on Social Security
Ben Chandler came out with some more outlandish statements about Social Security on the House floor in Washington D.C. Particularly unsettling was his contention that President Bush is "mortgaging away our future" with a plan that will add $4.8 trillion to the national debt. This new figure seems to have originated with a far left website www.cbpp.org that Chandler has quoted before. Last month, Chandler claimed that Bush wanted to cut Social Security benefits by "nearly 50%." His source for that, according to his staff, was this same website. He later backed off that statement when questioned about its veracity.
One can only imagine that if Chandler had been elected governor he wouldn't have so much time to surf the internet for liberal talking points.
One can only imagine that if Chandler had been elected governor he wouldn't have so much time to surf the internet for liberal talking points.
Bush Visits Louisville; Obstructionists Dissemble
Retired lawyer Chet Care probably didn't mean to connect the anti-Social Security reform protest with the anti-war on terror movement or the anti-tax cut movements, but that is exactly what he did. Care, 74, spoke to the Lexington Herald-Leader about his opposition to entitlement reform and his comments were printed in today's newspaper.
"Millions of people will never be part of the 'ownership society'" Bush envisions, Care said. "Social Security is the only safety net for them."
So there you have it: some people are just poor. We can't expect them to accept the opportunity to be anything other than poor. That is the same argument used to prevent the liberation of Iraq and the effort to spread freedom in the Middle East. Some folks just can't handle things like freedom or the ability to manage their own money when a perfectly good government bureaucrat (or a tyrannical dictator) is available. Come to think of it, they tried the same thing with the tax cuts. Remember Al Gore's imaginary billionaire friend who said he didn't want a tax cut, that the government could do more with his money than he could?
"Millions of people will never be part of the 'ownership society'" Bush envisions, Care said. "Social Security is the only safety net for them."
So there you have it: some people are just poor. We can't expect them to accept the opportunity to be anything other than poor. That is the same argument used to prevent the liberation of Iraq and the effort to spread freedom in the Middle East. Some folks just can't handle things like freedom or the ability to manage their own money when a perfectly good government bureaucrat (or a tyrannical dictator) is available. Come to think of it, they tried the same thing with the tax cuts. Remember Al Gore's imaginary billionaire friend who said he didn't want a tax cut, that the government could do more with his money than he could?
Wednesday, March 09, 2005
Jonathan Miller does Dean Scream in Louisville
The Courier Journal reports that our illustrious State Treasurer is going to a protest of Social Security Reform tonight in Louisville ahead of President Bush's visit to the River City. The Conservative Edge asks an interesting question for Jonathan Miller. He was the one who said Kentucky needs Democrats in office because it is a poor state. Can't have any of those little people getting above their raisin' now, can we? Elect liberals, he seems intent on screaming, so we can all suffer equally.
Lexington Mayor 2006 Rumor Mill
As Lexington's confiscation of Kentucky American Water Company jerks to a stop, efforts to find a serious replacement for Mayor Teresa Isaac continue in earnest. Jim Newberry has filed and is actively courting voters. The problem, though, is he has shown little in the way of ideas. His bumperstickers are showing up around town and he has yet to establish any compelling credentials other than not being the current mayor. Newberry's early momentum seems to bode well for a real conservative candidate.
Several of the better would-be candidates have little or no interest in serving as mayor. That's a good thing, because we don't want to deal with any dead weight throwing their names out for ego gratification. Several folks whose names have been brought up here are saying they won't run. Here's another name for very serious consideration: Larry Brandstetter.
Brandstetter is a Lexington architect and a former state lawmaker. He has conservative credentials, electoral success, and solid business experience. His prior leadership indicates that as mayor he would bring an approach to government that we are sorely lacking. And he is truly one of the good guys. The problem is that he may need some persuading to run. What do you think?
Several of the better would-be candidates have little or no interest in serving as mayor. That's a good thing, because we don't want to deal with any dead weight throwing their names out for ego gratification. Several folks whose names have been brought up here are saying they won't run. Here's another name for very serious consideration: Larry Brandstetter.
Brandstetter is a Lexington architect and a former state lawmaker. He has conservative credentials, electoral success, and solid business experience. His prior leadership indicates that as mayor he would bring an approach to government that we are sorely lacking. And he is truly one of the good guys. The problem is that he may need some persuading to run. What do you think?
Tuesday, March 08, 2005
Hey Democrats: WAKE UP!
It's March already and the national Democrats have not yet come to the table to talk seriously about Social Security Reform. They are stuck in obstructionist mode and it is only now starting to dawn on their strategists that this might not work for them. Fourty two Democrat U.S. Senators have written the White House offering to negotiate if President Bush takes private accounts inside the system off the table. Don't hold your breath. After this fails, what do Democrats have? Of course, they have the ability to filibuster but, still, what do they have? Do the Democrats have any serious ideas for the country other than to fight Bush? That may be enough to feed the red meat Bush-haters, but will it win any elections?
If partisanship was the problem last year, bipartisanship plagued the General Assembly in 2005. Expanding the Senate Republican majority and creating one in the House may be the only way for Kentucky voters to demand responsible budgeting in Frankfort. Demanding a budget agreement at all costs like we did this year is just too darn expensive to do again. We don't need back-slapping politicians getting along with each other; we need change.
If partisanship was the problem last year, bipartisanship plagued the General Assembly in 2005. Expanding the Senate Republican majority and creating one in the House may be the only way for Kentucky voters to demand responsible budgeting in Frankfort. Demanding a budget agreement at all costs like we did this year is just too darn expensive to do again. We don't need back-slapping politicians getting along with each other; we need change.
Monday, March 07, 2005
Baby Blog Me One More Time
Check out another Kentucky blog site, The Conservative Edge !!! More of a national focus, but some special features that cover the Bluegrass like no one else can...
The Liberal Response to Fiscal Restraint
We knew we were on to something when we saw this reaction to our call to shut down KAPT.
Government giveaways to the poor have been around for a long time. Now that middle class entitlements are becoming the norm, those of us who believe in smaller government even when the largesse is aimed at us have to stand up and be heard.
Kentucky's Affordable Prepaid Tuition program is a way for people to lock in today's college price for future tuition costs. The problem is that the taxpayers are on the hook for the inevitable shortfalls in the program. This is the Savings and Loan debacle of the 1980's all over again.
So when the Kentucky Senate acted to reverse KAPT's $13.7 million drain on the General Fund this year, the one politician that has gained the most from KAPT's bracket creep up the ladder of welfare mentality had this to say. Jonathan Miller's bogus claim that KAPT beneficiaries were being robbed to buy a practice gym for UK was debunked immediately, but he has spent too much time tying his political fortunes to the money losing program. Despite the facts, Miller has gone to war to keep KAPT alive to take even more taxpayer dollars in the years ahead. The original Senate proposal sought to keep taxpayer dollars out of the program this year and stop the Treasurer from opening future accounts in order to stop the bleeding. Miller succeeded this weekend in getting the House Democrats to keep KAPT open to future losses. So, for now, we get some of our money back, but the program lives on and the future losses will dwarf the $13.7 million Miller failed to take from us this year. Not surprisingly, Miller is urging his followers to call their legislators and demand that he be allowed to take this money.
To urge responsibility, you may call your legislator at 800-372-7181 or email using the legislator's name like this: stan.lee@lrc.ky.gov
Conservatives would do well to mount an effort to call Frankfort and encourage their legislators to cut our losses and shut down KAPT once and for all.
Government giveaways to the poor have been around for a long time. Now that middle class entitlements are becoming the norm, those of us who believe in smaller government even when the largesse is aimed at us have to stand up and be heard.
Kentucky's Affordable Prepaid Tuition program is a way for people to lock in today's college price for future tuition costs. The problem is that the taxpayers are on the hook for the inevitable shortfalls in the program. This is the Savings and Loan debacle of the 1980's all over again.
So when the Kentucky Senate acted to reverse KAPT's $13.7 million drain on the General Fund this year, the one politician that has gained the most from KAPT's bracket creep up the ladder of welfare mentality had this to say. Jonathan Miller's bogus claim that KAPT beneficiaries were being robbed to buy a practice gym for UK was debunked immediately, but he has spent too much time tying his political fortunes to the money losing program. Despite the facts, Miller has gone to war to keep KAPT alive to take even more taxpayer dollars in the years ahead. The original Senate proposal sought to keep taxpayer dollars out of the program this year and stop the Treasurer from opening future accounts in order to stop the bleeding. Miller succeeded this weekend in getting the House Democrats to keep KAPT open to future losses. So, for now, we get some of our money back, but the program lives on and the future losses will dwarf the $13.7 million Miller failed to take from us this year. Not surprisingly, Miller is urging his followers to call their legislators and demand that he be allowed to take this money.
To urge responsibility, you may call your legislator at 800-372-7181 or email using the legislator's name like this: stan.lee@lrc.ky.gov
Conservatives would do well to mount an effort to call Frankfort and encourage their legislators to cut our losses and shut down KAPT once and for all.
Thursday, March 03, 2005
Memo to Jonathan Miller: Give us our money back!!
This morning on Dave Baker's show on WLAP 630 AM in Lexington, state Treasurer Jonathan Miller said "KAPT has never used taxpayer dollars and never will."
This is completely untrue. Further, the Unclaimed Property Fund that Miller has said contains $140 million to $150 million to back up KAPT liabilities, has no such value. Not even close. Someone should ask Miller to prove this claim.
But it really doesn't matter. Miller, in his incessant shilling for the KAPT program, leaves out the only important facts. People who signed up for the program were shrewd. The state has to back up those contracts, even if it means using taxpayer dollars to do so. The 9000 or so people who signed up will get an outstanding return on their investments; the General Fund guarantees it. Parents and grandparents who looked at the program and passed on it because it looked too good to be true were right as well. The program is unsustainable without periodic taxpayer bailouts. The deficit this year was $13.7 million. The House voted to fill that hole with General Fund dollars. The Senate acted courageously in not only pulling our General Fund dollars out, but also essentially shutting down the program to future losses. The predictable Herald Leader editorial today weakly urged the Senate to give our $13.7 million back to KAPT. They won't.
Meanwhile, Miller seems determined to die on this hill. After learning at famous sore loser Al Gore's knee in Washington D.C. some years ago, he appears perfectly willing to stick to a bad lie or two. And this is an excellent illustration of the changing media tide. He has convinced the Herald Leader to carry his water for him. The question of the day is what will you do with this information?
This is completely untrue. Further, the Unclaimed Property Fund that Miller has said contains $140 million to $150 million to back up KAPT liabilities, has no such value. Not even close. Someone should ask Miller to prove this claim.
But it really doesn't matter. Miller, in his incessant shilling for the KAPT program, leaves out the only important facts. People who signed up for the program were shrewd. The state has to back up those contracts, even if it means using taxpayer dollars to do so. The 9000 or so people who signed up will get an outstanding return on their investments; the General Fund guarantees it. Parents and grandparents who looked at the program and passed on it because it looked too good to be true were right as well. The program is unsustainable without periodic taxpayer bailouts. The deficit this year was $13.7 million. The House voted to fill that hole with General Fund dollars. The Senate acted courageously in not only pulling our General Fund dollars out, but also essentially shutting down the program to future losses. The predictable Herald Leader editorial today weakly urged the Senate to give our $13.7 million back to KAPT. They won't.
Meanwhile, Miller seems determined to die on this hill. After learning at famous sore loser Al Gore's knee in Washington D.C. some years ago, he appears perfectly willing to stick to a bad lie or two. And this is an excellent illustration of the changing media tide. He has convinced the Herald Leader to carry his water for him. The question of the day is what will you do with this information?
Wednesday, March 02, 2005
Jonathan Miller Lies To Public About KAPT
WVLK 590 AM's Kruser and Krew program this afternoon reported some of the details printed here that sought to clear up misconceptions perpetuated by state Treasurer Jonathan Miller about the existence of an unfunded liability in the KAPT program.
Miller called in to the program and was put on the air. His stated purpose was to "correct misunderstandings about KAPT" and to counter misinformation that he attributed to Senate President David Williams. Miller has repeatedly referred to the State Senate's effort to phase out the KAPT program as a "raid." What the Senate did, which was clearly explained in the Fiscal Biennium 2004-2006 Budget Modification Report, was to reverse an appropriation of $13,700,100 from the General Fund to the KAPT Program Fund written into the House budget. The stated purpose of this suggested appropriation was to "meet KAPT's unfunded liability." So to be perfectly clear, the $13.7 million in question was a payment from Kentucky taxpayers to the 9000 or so KAPT beneficiaries written into the budget by the House of Representatives. The Senate appropriately removed this "gift" and moved to shut down the money-losing program to potentially limitless liabilities. By statute, current contract holders will see all their promised tuition assistance. The Senate's action merely places a limit on future losses by the program. Mainstream media outlets predictably have given Miller a pass for his poor judgement in lying about this matter by not reporting it. Kentucky Progress salutes WVLK and Kruser and Krew for shedding some light on this event. Miller has chosen to make this a cause celebre, aparently against conservative budgeting. As such, we will keep you updated as Miller continues to protect his misstatements with, one assumes, more lies.
Miller called in to the program and was put on the air. His stated purpose was to "correct misunderstandings about KAPT" and to counter misinformation that he attributed to Senate President David Williams. Miller has repeatedly referred to the State Senate's effort to phase out the KAPT program as a "raid." What the Senate did, which was clearly explained in the Fiscal Biennium 2004-2006 Budget Modification Report, was to reverse an appropriation of $13,700,100 from the General Fund to the KAPT Program Fund written into the House budget. The stated purpose of this suggested appropriation was to "meet KAPT's unfunded liability." So to be perfectly clear, the $13.7 million in question was a payment from Kentucky taxpayers to the 9000 or so KAPT beneficiaries written into the budget by the House of Representatives. The Senate appropriately removed this "gift" and moved to shut down the money-losing program to potentially limitless liabilities. By statute, current contract holders will see all their promised tuition assistance. The Senate's action merely places a limit on future losses by the program. Mainstream media outlets predictably have given Miller a pass for his poor judgement in lying about this matter by not reporting it. Kentucky Progress salutes WVLK and Kruser and Krew for shedding some light on this event. Miller has chosen to make this a cause celebre, aparently against conservative budgeting. As such, we will keep you updated as Miller continues to protect his misstatements with, one assumes, more lies.
Tuesday, March 01, 2005
Jonathan Miller Declares War to Save KAPT boondoggle
Kentucky's state Senate voted Monday to stop Treasurer Jonathan Miller's raid on the General Fund by removing a payment to his bankrupt Kentucky's Affordable Prepaid Tuition program from the House budget bill.
Despite Miller's insinuations that the removed payment represented savings dollars of Kentucky families participating in the program, the $13.7 million actually was taxpayer money not intended to shore up the KAPT deficit. That money would have to be removed from elsewhere in the budget. KAPT has consistently lost money on investments and squandered millions on promotional expenses since 2001.
Billed as a program to help Kentucky families pay for future higher education expenses at current prices, KAPT would only be sustainable if investment returns exceeded tuition cost increases and KAPT expenses. Miller's response to the Senate's refusal to fund the bail out of his program has been extreme: "(It) is inexcusable, unconstitutional, and immoral," Miller said, claiming falsely that KAPT is "financially healthy" and that the Senate was using KAPT money to fund a basketball gym.
As presently structured, KAPT can most accurately be described as an entitlement program to help middle- and upper-income families pay for college expenses. Miller states that shortfalls in the program can be covered by the nearly-worthless Unclaimed Property Fund, which isn't true.
Despite Miller's insinuations that the removed payment represented savings dollars of Kentucky families participating in the program, the $13.7 million actually was taxpayer money not intended to shore up the KAPT deficit. That money would have to be removed from elsewhere in the budget. KAPT has consistently lost money on investments and squandered millions on promotional expenses since 2001.
Billed as a program to help Kentucky families pay for future higher education expenses at current prices, KAPT would only be sustainable if investment returns exceeded tuition cost increases and KAPT expenses. Miller's response to the Senate's refusal to fund the bail out of his program has been extreme: "(It) is inexcusable, unconstitutional, and immoral," Miller said, claiming falsely that KAPT is "financially healthy" and that the Senate was using KAPT money to fund a basketball gym.
As presently structured, KAPT can most accurately be described as an entitlement program to help middle- and upper-income families pay for college expenses. Miller states that shortfalls in the program can be covered by the nearly-worthless Unclaimed Property Fund, which isn't true.
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