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Economic System

It's Right Versus Wrong, Not Left Versus Right

Melanie Sturm | @ThinkAgainUSA Read Comments - 14
Publish Date: 
Thu, 07/03/2014

 

Imagine a 4th of July tradition like Hollywood’s where each year the Oscars pay homage to fallen stars.  Liberty-loving Americans would fete public servants who’ve honored Thomas Jefferson’s rule to “leave no authority existing not responsible to the people.”

 

Might celebrating trustworthy stewards inspire Americans to Think Again about our founders’ insights, ingraining a culture that prizes democratic accountability and lawful government, the one that transformed our risky political experiment into history’s freest and most prosperous society?

 

We’d be celebrating two recently passed stalwarts who put country and constitutional order before party: Senator Howard Baker, the Senate Watergate Committee’s ranking Republican who famously asked “what did the President know and when did he know it,” and Johnnie Walters, President Nixon’s IRS commissioner, who refused to target his “enemies list.”

 

Like our Founders, Baker and Walters understood that where equality under the law goes, so goes freedom. Therefore, the greatest threat to civil society and human potential is a powerful, deceitful and unaccountable government where the few rule the many.

 

That’s why the Founders designed a liberty-preserving system that fragmented and checked government power among equal, competing branches, conferring ultimate authority upon the people -- not our representatives.

 

Respectful of Jefferson’s rule, unlike many in today’s “Ruling Elite,” it’s doubtful Baker or Walters would stomach the IRS targeting Americans for their political beliefs, or the evaporation of email evidence critical to congress’ investigation -- called “a conspiracy theory” by the White House. 

 

Journalistic sleuths Woodward and Bernstein know that government accountability derives from an active media and an informed citizenry.  In comparing the IRS and Benghazi scandals to Watergate, they criticized the media for abandoning its constitutionally protected watchdog role, appearing instead to protect the government from Americans.

 

Public servants may arrive eager to drain Washington’s cesspool, but after harnessing governmental power and dispensing money and favors, they discover it’s a hot tub made inviting by politicians, bureaucrats, public-sector unions, lobbyists, donors, and the media.

 

Our greatest challenge -- and the biggest threat to the world’s oldest (and shortest) constitution -- isn’t a left versus right tug-of-war, but a struggle to wrest power away from those who collude at the citizens’ expense.  

 

Incentivized to invest in influence instead of innovation, Big Business (currently enjoying record profits) can buy access to trillions in spending, tax and regulatory favors. The result is a heavily indebted citizenry and a stagnant economy warped by cronyism, as evidenced by the 2.9 percent plunge in first-quarter U.S. GDP -- the worst non-recession contraction in over 40 years.

 

Not surprisingly, the small business sector that accounts for two-thirds of net new job creation is suffering as “business deaths now exceed business births for the first time in the thirty-plus-year history of our data,” according to a new Brookings Institution report on declining business dynamism.

 

While Wall Street and Washington boom, the rest of America suffers crisis levels of income stagnation, underemployment, economic immobility and government dependency, with a record 50 million living in poverty.

 

Yet as the American Dream slips beyond reach for ordinary citizens, those who oppose the Ruling Elite are labeled extremists, proving George Orwell’s adage that “In a time of universal deceit, telling the truth will be a revolutionary act.”

 

Consider last month’s Mississippi Senate run-off that spoilsman Thad Cochran narrowly won, thanks to crony donations and promises to keep the gravy train running, unlike his “extremist” opponent.

 

But who are the extremists? Those who advocate free markets, equality under the law, fiscal responsibility, constitutional adherence, in God we trust, and peace through strength – the campaign platform of David Brat, Majority Leader Eric Cantor’s vanquisher – or the Ruling Elite who subvert these guiding principles?

 

Though distressed Americans clamor for law, order and security on our southern border, slack immigration-law enforcement has accelerated unlawful migration. Exacerbating the lawlessness are lawmakers like Nancy Pelosi who called the deluge of illegal immigrants an “opportunity.”

 

Unfortunately, the opportunity is at the expense of working Americans, considering all employment growth since 2000 went to immigrants (legal and illegal), the Center for Immigration Studies reported.

 

Meanwhile, with Congress requiring border security prior to any amnesty, President Obama intends to act alone, as he did in 2012 when he indefinitely suspended deportations of 550,000 alien youths, granting them work permits. 

 

Commenting on Obama’s intentions following his twelfth unanimous Supreme Court rebuke for federal power over-reach, constitutional law professor and Obama-voter Jonathan Turley explained, the President “can’t say the solution to gridlock is you simply have to resolve it on my terms.”

 

Having overthrown King George’s unfair and arbitrary rule, our Founders established an America of, by, and for the people – not Ruling Elites -- stipulating that presidents “shall take care that the laws be faithfully executed.”

 

Think Again – wouldn’t a shared allegiance to our constitutional order be the best way to realize a more perfect union, for “ourselves and our posterity?”

 

 

Universities and Bureaucracies: Close-Minded Havens -- Are proliferating scandals the consequence?

Melanie Sturm | @ThinkAgainUSA Read Comments - 14
Publish Date: 
Thu, 06/05/2014

 

“I’m not young enough to know everything,” Peter Pan’s creator J.M. Barrie observed, as if reflecting on the Great Commencement Speaker Flap of 2014. However Jimi Hendrix was young when he reputedly offered advice heeded by too few students – “knowledge speaks, but wisdom listens.”

 

Aware that wisdom comes from asking the right questions, not identifying the wrong answers, Professor Allan Bloom blasted universities in 1987 for exacerbating youthful indiscretion.

 

In his seminal book “The Closing of the American Mind: How Higher Education Has Failed Democracy and Impoverished the Souls of Today’s Student,” Bloom argued students were graduating into a complex and conflict-riddled world without the insights that come from the clash of opposing viewpoints.

 

Thirty years hence, are the controversies plaguing America the consequence?

 

Real advance, Albert Einstein revealed, requires the creative imagination to Think Again, “to raise new questions, new possibilities, to regard old problems from a new angle.” We can’t solve problems, Einstein believed, by applying the same “thinking we used when we created them.”

 

Nevertheless, “tolerance enforcers” wielding moral superiority and a heckler’s veto have transformed campuses into close-minded sanctuaries. Cocooned away, students are safe from potential insult, reflective thought, disagreement – and real life.

 

This year’s commencement castoffs -- victims of a war on accomplished and courageous women -- include: Ayaan Hirsi Ali, human rights activist; Condoleeza Rice, former U.S. Secretary of State; and Christian Lagarde, International Monetary Fund Chief.

 

Couldn’t Brandeis’ class of 2014 have learned something from Ali, a Somali feminist who overcame subjugation, genital circumcision and forced marriage to become a Dutch parliamentarian, Harvard professor, and internationally acclaimed author, while living under death threats?

 

Wasn’t it worth Rutgers graduates’ time to listen to Rice, an African-American who emerged out of the segregated south to become the most accomplished black woman in American history, whose foreign policy judgments were shared by then-senators Clinton, Biden and Kerry?

 

Wouldn’t Smith women have derived inspiration from Lagarde, the first woman to become finance minister of a G8 economy (France) and head of the IMF?

 

At last week’s Harvard commencement, Michael Bloomberg won applause denouncing the left-wing bias that censors unfashionable voices on campus asking, “Isn’t the purpose of a university to stir discussion, not silence it” in order “to teach students how (not what) to think?”

                       

That’s what I assumed while attending Tufts University where I co-founded a student newspaper deemed offensive by the thought police. They branded me -- and my vandalized car -- “fascist” for writing opinions about the nuclear freeze, Reagan’s social security reform, and Jessie Jackson’s “hymie-town” slur.

 

The problem is not just that “censorship and conformity [are] the mortal enemies of freedom,” as Bloomberg declared. It’s that when “everyone is thinking alike, then no one is thinking,” as Benjamin Franklin taught, creating a culture that breeds incompetence, indifference, greed, irresponsibility, and corruption – in essence, scandalous behavior.

 

Consider the latest scandal rocking Washington at the Veterans Administration, the federal government’s largest employer. To meet a patient caseload that’s grown 30 percent since 2003 and address persistent quality-of-care problems, the VA’s budget more than doubled over the period while full-time employees jumped 63 percent to 314,000.

 

Yet the VA still can’t match the private sector’s standard of care, which is why only 40 percent of veterans are enrolled in the government-run health care system. The just-released VA audit confirms a widespread and “systematic lack of integrity,” as employees prioritized their bonuses over sick and dying veterans.

 

It’s a story of unaccountability, fraud and potentially criminal conduct that even shocked the now-former VA head, Eric Shinseki.  Unfortunately, unlike the private sector, the Washington Way is: if you like your government job, you can keep it – except for scapegoats like Shinseki.

 

The truth is, without the disciplining and invigorating influence of an open and competitive intelectual environment, and the innovation and accountability it fosters, otherwise honorable and capable people can be rendered indecent and incompetent. It’s the eco-system -- not the people in it -- that mostly determines human behavior.

 

In the frantic circumstances of 9/11, people behaved magnificently, as is highlighted at the just-opened 9/11 Memorial Museum. Most remarkable are stories of the rescued – civilians and emergency responders – who returned to the wreckage “to do for others what had been done for us,” explained retired fireman Mickey Cross.

 

Even amid confusion and devastation, Cross noted “a real sense of caring for one another…” which “is something we should never forget and never stop doing.”

 

For those caught in the tragedy, there was no script or easy answers, only difficult questions. Yet the improbably heroic did the right thing, even under duress, which is the definition of initiative.  In a more open system, VA employees would likely do the same.

 

Think Again – We don’t need crises to bring out the best of humanity, just a better environment to produce decent, motivated and wise people.


Who's Imposing Their Values On Whom?

Melanie Sturm | @ThinkAgainUSA Read Comments - 10
Publish Date: 
Thu, 04/10/2014

 

Shouldn’t college students know as much American civics as they do pop culture?

 

MRCTV went to American University to find out, discovering few who could name a single US senator or the number of senators from each state, though most knew the Oscar-winning song “Let It Go.”

 

Equally surprising are polls showing that only one-quarter of Americans can identify Joe Biden as the vice president or name more than one of the five freedoms guaranteed by the First Amendment (religion, speech, press, assembly, petition), though over half knew at least two Simpson cartoon characters.

 

Before suggesting Americans’ ignorance is bliss, Think Again. “Fear always springs from ignorance,” said Ralph Waldo Emerson, which is why fear mongering and placating assurances have enabled a ruling elite to wield enormous power over the people – our founders’ worst nightmare.

 

False promises and controversial payoffs enabled the narrow passage of Obamacare, which grants unelected bureaucrats control over 16 percent of the economy, empowering them to impose costly and freedom-infringing regulations.

 

Perhaps their most liberty-assaulting decree – and cunning given its election-year timing  -- was the unprecedented Health & Human Services (HHS) mandate forcing employers to provide free contraception, including abortion-inducing methods, or face a $100 per day/per employee fine.  

 

That amounts to $47 million annually for arts-and-crafts retailer Hobby Lobby, whose devoutly Christian owners, the Green family, oppose the mandate with pilgrim-like fervor.

 

Just because they started a business, the Greens argue, doesn’t mean they must leave their religion in the pews. The First Amendment guarantees their right to live and work by their faith, and they won’t give it up without a fight.

 

For 44 years, the Greens have operated Hobby Lobby as they do their lives, in accordance with Biblical principles. They close on Sunday to honor the Sabbath, pay justly by starting full-time employees at nearly twice the minimum-wage, maintain a free health clinic at their Oklahoma headquarters, and offer Cadillac-level health benefits for 13,000 employees, covering 16 out of the 20 Obamacare-mandated contraception drugs. And they won’t pay for four abortion-inducing methods, all cheap and ubiquitous.

 

Their Supreme Court case will determine whether the federal government can force corporations owned by individuals to choose between moral beliefs and government dictates, or face crippling IRS-enforced penalties.

 

Hobby Lobby argues the HHS mandate violates the Religious Freedom Restoration Act -- passed nearly unanimously and signed by President Clinton – which says the government can’t “substantially burden a person’s exercise of religion” without “compelling” justification and using “the least restrictive means.”

 

With half the population already exempted from Obamacare and it’s contraception mandate, how could there be a compelling interest in forcing conscientious objectors to comply when their non-compliance is hardly burdensome?

 

While admitting the mandate forces the Greens to violate their Christian faith, the government argues religious liberty is forfeited when people go into business for profit, meaning companies could also be required to pay for abortions, and kosher butchers could be forced to break ritual laws -- an outcome all media corporations should oppose, or risk losing their first amendment freedoms.

 

If the government didn’t insist its interests trumped the First Amendment, it could make abortifacients available otherwise, which would be “a win for everybody,” according to Harvard law professor Alan Dershowitz.

 

“I’m a liberal Democrat who supports Obamacare. But I think the constitutional right of the free exercise of religion trumps my own personal, political views,” concluding, it’s not “a complex case.”

 

Unfortunately, a win/win solution is not the preferred outcome for mandate supporters like Senator Barbara Boxer whose rhetorical bombs transform dissenters like Hobby Lobby into War on Women combatants.

 

Misconstruing Hobby Lobby’s plea not to buy abortifacients for employees as “denying women birth control,” Boxer declared the company is anti-woman and hypocritical for having “no moral objection to men getting Viagra” -- as if procreation-aiding drugs resemble pregnancy-ending ones.  Stoking more fear, she mused whether vaccinations and HIV drugs might be “their next moral objection.”

 

Throughout our liberty-loving history, Americans have endorsed Voltaire’s enlightened principle – “I do not agree with what you have to say, but I’ll defend to the death your right to say it.” No more.

 

In abandoning this principle, we now assassinate the character of non-conformists, like Mozilla CEO Brendan Eich who was purged last week for contributing $1000 to the 2008 passage of Proposition 8 in California.  Meanwhile, no political leader dares to face the gathering mob despite sharing Eich’s views on marriage until recently.

 

Once the mob forms, no dissenter is legitimate, no sunlight can disinfect, no society is free, and no constitutional right is secure. 

 

Regardless of one’s views on contraception, abortion or marriage, this can’t be our destiny.

 

Think Again – if Americans want to retain our right to prefer pop culture to politics, we must preserve our individual liberties.

 

 

 

 

Inequality and A Tale of Two Ukrainians

Melanie Sturm | @ThinkAgainUSA Read Comments - 7
Publish Date: 
Thu, 02/27/2014

 

Last week, as Ukrainian émigré-turned-tech tycoon Jan Koum prepared to cash a multi-billion dollar check from Facebook -- acquirer of his start-up “WhatsApp” -- Ukrainian President Viktor Yanukovich was checking-out of his Gatsby-esque estate where he’d cached his stolen plunder.

That the two Ukrainians derived their riches under diametrically opposed systems – free enterprise versus banana republic – Illustrates why all income inequalities are not created equal.  

Most don’t resent the rich -- only the undeservedly rich – as a recent Venezuelan protest sign conveyed: “These Castro-Chavistas speak like Marx, govern like Stalin, and live like Rockefeller, while the people suffer!”

Koum’s affluence springs from a free society in which everyone has a God-given right to go as far as their work and talent will take them. Yanukovich’s hijacked wealth is exploitive, depriving others of dignity, opportunity, and economic mobility. One system disperses power as it champions an individual’s right to pursue happiness; the other concentrates it while stifling human potential.

There will always be a top 1%. The question is: will they be hardworking and productive people whose value creation benefits society – think Steve Jobs and JK Rowling -- or cronies living off perks extracted from the labor of the little people? 

In America, we have increasing numbers of both which is why we must Think Again before allowing policymakers to concentrate more power in the name of social justice. In fact, economic liberalization is the real cure.

Economically freer countries enjoy greater growth, opportunity, civil rights and health, as evident in the yawning gap between North and South Korea, and in Asia where hundreds of millions have escaped grinding poverty.

To secure their freedoms, Ukrainian protestors resemble Koum’s mother. She fled Kiev for California in 1992 with 16-year-old Jan in search of religious liberty, privacy from Ukraine’s surveillance state and the opportunity to realize a better life.

Though they struggled upon arrival, relying on public assistance, Jan’s climb from food stamps to Facebook fortune was jagged and improbable -- a journey he honored by signing the $19 billion sale agreement outside the building that once housed the food stamp office.

The Koum tale is a triumph made possible by America’s system of free enterprise and limited government, which produced human history’s most dynamic and decent society.

Today the American Dream is increasingly out-of-reach for those stuck in government dependency or struggling to survive amidst stagnant wages, declining job mobility, and ever-increasing health care, food and energy costs. 

Confusing the symptom with the disease, President Obama rails against income inequality, pronouncing it “the defining challenge of our time.” But he has it backwards -- economic stagnation causes income inequality, not vice versa.

Obama also ignores the social mobility-impairing trend of single motherhood, which exploded from 4 percent in 1960 to 42 percent currently, accounting for 50 percent of chronic poverty.

Instead of targeted policies to eradicate poverty – eliminating welfare’s marriage penalty and allowing parents to choose the school that’s best for their child --- Obama’s proposed minimum wage hike and unemployment-insurance extension are mere Band-Aids on the cancer of opportunity inequality.

Five years of Obama’s trickle-down-government policies have buoyed Wall Street, corporate America and Washington, DC where seven of America’s wealthiest counties reside – like the capital of “Hunger Games” whose powerful aristocracy lives off the tribute paid by impoverished citizens in the territories.

Despite trillions of stimulus and War on Poverty spending -- causing debt to swell 63 percent -- the nearly five-year economic recovery has one-quarter the GDP growth rate of the Reagan recovery. Though the stock market has doubled, median household income fell 6 percent, labor force participation hit a 35-year low, and a record 47 million Americans now live in poverty.

While not Yanukovich-style graft, our government transfers hundreds of billions of dollars annually to the affluent, thanks to cronyism, corporate welfare and entitlement programs that don’t distinguish between ordinary Americans and corporate jet owners.

Last year, America’s richest 10% captured the greatest share of pre-tax income growth since the Roaring 20’s, according to University of California-Berkeley economist Emanuel Saez.  He also showed the top 1% capturing 95 percent of income gains during the Obama Recovery (2009-present), compared to 65 percent during the Bush expansion (2002-2007).

That so many Americans have fallen behind is both appalling and avoidable, and a reflection of America’s deteriorating freedoms.  Formerly second in the Wall Street Journal/Heritage Index of Economic Freedom behind Hong Kong, America is now twelfth -- below Estonia.

Bequeathing our children an economically stagnant America is a choice, not a destiny.  Our real “defining challenge” is to restore the growth that creates jobs, opportunity, social mobility and future Jan Koum’s.

Think Again -- Shouldn’t our goal be to unleash the dreams and talents of all Americans – especially former food stamp clients – so they can lead fulfilling and happy lives?

 

If You Like Your Freedom, You Can Keep It

Melanie Sturm | @ThinkAgainUSA Read Comments - 13
Publish Date: 
Thu, 12/05/2013

 

In the waiting room of Memorial Sloan-Kettering’s radiation treatment center, I discovered that in the race of life, those running to stay on the track are among the most determined, hopeful, and courageous. They’re also grateful, for it’s in the sanctuary of sympathetic and expert care where cancer patients experience calm and clarity after the storm of diagnosis and decision-making.

 

As if living with cancer-induced anxiety weren’t enough, many Sloan-Kettering patients must Think Again about their treatment since the cancer center is among many prominent hospitals no longer “in network” for most Obamacare-compliant insurance plans.

 

Americans already have the world’s best health care system. The question is how to make it broadly accessible, especially to the most vulnerable.  Claiming a monopoly on moral and political virtue and disparaging as uncompassionate obstructionists those who opposed the 2,700-page Affordable Care Act, lawmakers drove its passage promising increased access, lower costs and, “if you like your doctors, you can keep them, period.”

 

Now it’s broken hearts and spirit -- not just broken promises, websites, and insurance systems -- that plague intrepid patients, to their providers’ frustration. Meanwhile, healthy Americans laboring under stagnant wages are recoiling from sticker and doc-shock, proving CS Lewis’ maxim that “those who torment us for our own good will torment us without end for they do so with the approval of their own conscience.” 

 

“Pay more for less” isn’t a winning slogan, but it’s the truth. The collusion of government and insurance companies to limit competition and consumer choice has impaired Americans’ freedom to be value-oriented shoppers and imperiled our property and privacy rights.

 

Americans want patient-centered and patient-owned health care and an array of competitive choices to assure price stability, service quality, and access to all. But rather than consider targeted and less disruptive changes like insurance portability, tort reform, tax credits and high-risk pools, Obamacare proponents further straightjacketed the healthcare system with one-size-fits-all mandates, taxes, and micro-management by an inept bureaucracy.

 

Yet lawmakers won’t wear the straightjacket they designed for Americans. Senator Reid’s staff is exempted from Obamacare and, according to the Los Angeles Times, Congress and staffers enjoy “more generous benefits packages, VIP customer service from insurers and the same government-subsidized premiums they’ve always enjoyed.”

 

This is government over the people – not our founders’ vision of government of, by and for the people.  They wanted America to be the exception to human history’s rule where tyranny, bondage and stifled human potential defined life for the vast majority. While French revolutionaries were sticking dissenters’ heads on bayonets, America’s revolutionaries established self-government and enshrined popular consent and human equality – the idea that no one by nature can be the ruler of anyone else – in our founding documents.

 

To preserve individual freedom, they designed a government system that separated political powers and dispersed authority, pitting “ambition against ambition” to check political impulsiveness. To force consensual deliberations and thwart large mistakes like Obamacare, the Senate was to be the “necessary fence” against the “fickleness and passion” of the House where transient majorities rule.

 

But lawmakers more interested in advancing partisan agendas than assuring government’s legitimacy and durability have chipped away at the system that enabled American society to become the freest, most productive and most decent in human history. 

 

They’ve passed massive, lobbyist-written and unread laws on party-line votes; concentrated power in the Executive branch and the unaccountable administrative state; and most recently, activated the “Nuclear Option” in the Senate to eliminate the filibuster (a 60-vote threshold requiring consultation with the minority) on Presidential nominees – a two-century old tradition.

 

Ironically, Americans aren’t so polarized. Though politicians exploit wedge issues to foment divisions, we’re united in wanting to limit the size, power and cost of government. We know that to overcome our challenges, individual citizens must wrest decision-making authority away from Washington.

 

Fifty years ago, on the one-hundredth anniversary of President Lincoln’s Gettysburg Address, President Kennedy was en route to Dallas where he was assassinated.  In commemorating these anniversaries, Americans recall why these leaders are revered – because they united us around shared values, summoning us to assure liberty’s survival for subsequent generations. 

 

Kennedy declared, “the cost of freedom is always high, but Americans have always paid it,” imploring us to “ask not what your country can do for you; ask what you can do for our country.” Lincoln roused a fractured citizenry to finish the soldiers’ work so that “these dead shall not have died in vain -- that this nation, under God, shall have a new birth of freedom -- and that government of the people, by the people, for the people, shall not perish from the earth.”

 

Exhausted by democracy’s follies, we should recall these words and heed their advice.

 

Think Again – rather than allow politicians to divide us, remember we’re all freedom-loving Americans eager to realize our full potential in the race of life.

The Unbearable Lightness of Being Indebted

Melanie Sturm | @ThinkAgainUSA Read Comments - 10
Publish Date: 
Thu, 05/23/2013


“Fat, drunk, and stupid is no way to go through life,” counseled Faber College’s Dean Wormer in “Animal House.” For the collegiate class of 2013 -- until next year the most indebted ever – add “in hock” to that immortal list. 


Compared to their parents, current graduates are paying four times more in inflation-adjusted terms for their diplomas while suffering substantially inferior job and income prospects. Like Animal House’s witless frat-brothers, those who believe college is a “last hurrah” before plunging into adult reality must Think Again.

For generations, Americans practiced what Benjamin Franklin preached – “an investment in knowledge pays the best interest” – believing a college degree was an affordable yet golden ticket to independence, a satisfying career, financial security and an “open sesame” to American society. Even students without credit histories or clear plans for the future could borrow the necessary sums to pursue impractical majors like ethnic studies, take six years to graduate, and still land jobs with incomes sufficient to pay down debt.

Today however, a college degree is substantially riskier due to mushrooming global supplies, ever-inflating U.S. diploma prices, and a more selective, chaotic and stressful market for college graduates. Though a B.A. carries a certification premium with employers, it conveys little about actual qualifications, especially considering recent studies of higher education outcomes (surveyed in the 2011 book “Academically Adrift”) which show how little knowledge, critical thinking and skills acquisition occur between an undergraduate’s freshman and senior years.

Because its risk/reward ratio is out-of-whack, it’s no longer a truism that you’ll get out of college what you put into it. Among those under 25-years-old, 53 percent are either unemployed or in jobs that don’t require a bachelor’s degree, a high for this demographic since record keeping began in 1948.

As in the housing bubble, easy credit and expectations of ever-increasing returns on education investments buoyed demand for college diplomas. To capture federal money, academic institutions hiked tuition causing students to incur more debt, diminishing the degree’s reward. Since 1978, tuition has grown 7.5 percent annually, far outpacing inflation and family incomes, which increased 3.8 percent and 5.0 percent respectively.

Because many colleges operate like mortgage brokers, even encouraging students who are academic risks to take on debt, two-thirds of freshmen borrow while one-third of those with loans leave degreeless. Consequently, the portfolio of federally guaranteed student loans has grown to $1 trillion -- up 70 percent since 2008, exceeding total credit card debt. Considering government loans aren’t dischargeable, even in bankruptcy, many are sacrificing their dreams including further education, marriage, kids and homeownership.

The biggest victims are those the system was designed to bolster – marginal students. Just as federal lending policies helped inflate the housing bubble undermining the ability of low-income home buyers to ascend into the middle class, federal student loan policies have backfired, consigning indebted and degreeless Americans to the low end of the labor market without incomes sufficient to pay off debts.

Given these sad realities, former Education Secretary Bill Bennett poses a frequently asked question in his book “Is College Worth It?” Students whose lifetime earnings potential comfortably exceeds their debt -- achievable with sought-after degrees like petroleum engineering or prestigious credentials like a Stanford diploma – should go. However, “two-thirds of people who go to four-year colleges right out of high school should do something else,” especially considering Bureau of Labor Statistics predictions that 7 of the top 10 fastest-growing jobs require on-the-job training, not higher education.

At the heart of America’s education crisis is the implicit goal to leave no child behind without a college degree, as if the college campus were the optimal garden for all children to flourish.  Parents and teachers appreciate how distinctive and diversely talented kids are. Yet our K-12 “one-size-fits-all” system emphasizes and tracks academic abilities -- often at the exclusion of non-academic aptitudes – and without great success considering reading and math scores are no higher for 17-year-olds than they were in 1970, despite an inflation-adjusted tripling of K-12 education spending.

The consequence of our misplaced focus on college is that many brilliantly talented and creative people believe they’re not because their unique abilities were devalued at school. Wouldn’t our kids be better served if educational success meant enabling students to reach adulthood aware of their native abilities and passions and inspired to realize their full potential? Wouldn’t society be enhanced by a richer conception of human capacity that appreciates diverse talents and rewards what one knows and can do, not one’s salary?

New education start-ups that use online technologies – like the recently announced MIT/Harvard joint venture -- have the potential to revolutionize education, offering students affordable courses to “do what you can, with what you have, where you are,” as Theodore Roosevelt urged. 

Think Again – isn’t lifting kids from where they are to a better place in life the point of education?

In Discerning Frack From Fiction, What's Relevant?

Melanie Sturm | @ThinkAgainUSA Read Comments - 11
Publish Date: 
Thu, 03/14/2013

 

Last week political, media and celebrity worlds converged to produce headlines worthy of “News of the Weird.” Sean Penn eulogized anti-American strongman Hugo Chavez as “a friend [America] never knew it had,” while Dennis Rodman declared North Korean dictator Kim Jong Un “an awesome guy.” Upon returning from the starving gulag-state, Rodman scored a coveted Sunday interview with George Stephanopoulos and CNN declared him a “diplomatic triumph.”

 

But perhaps the most captivating cause célèbre -- likely to transform advocates into media and campus darlings -- is the crusade to halt the drilling innovation called hydraulic fracturing (“fracking”). However, if you expect those aspiring to star in the next “China Syndrome” to possess more scruples than Rodman or Penn, Think Again. Though fracking has opened up vast reserves of clean, cheap, and reliable natural gas in shale-rock deep underground, making America the world’s largest natural gas producer, it’s a bête noire to enviro-stars like Matt Damon.

 

In his new movie “Promised Land,” Damon doubled down on alarming claims made in Josh Fox’s Oscar-nominated documentary “Gasland,” even copying the signature scene of a man lighting tap water on fire. Wanting another environmental blockbuster like “The China Syndrome” -- whose release days before Three Mile Island’s near meltdown devastated the nuclear power industry -- Damon aimed to stoke natural gas fears. However, not only has mass hysteria not materialized, his film is a box-office and financial bust for investors, including oil-rich United Arab Emirates.

 

Damon’s conceit derives from the frenzy generated by “Gasland’s” Fox, who claims fracking causes “toxic streams, ruined aquifers, dying livestock, shocking illnesses and tap water that bursts into flames.” Media jumped on the anti-natural gas bandwagon, including the New York Times, prompting its ombudsman to twice rebuke Times’ editors and staff for biased reporting and questionable ethics.

 

Meanwhile, aware that “natural” gas occurs naturally in water where there’s methane-rich soil (like Burning Springs, New York) and of stories about George Washington lighting water on fire, former Financial Times reporter Phelim McAleer started an 18-month investigation to uncover the truth about fracking and “Gasland’s” startling allegations.

 

His just released documentary ”Fracknation” was financed on-line with donations averaging $64 and has won plaudits for exposing enviro-hucksters while championing their victims: Variety called it “a well-reasoned film…. [that] makes a good case against Fox’s movie,” and the New York Times said it’s “no tossed-off, pro-business pamphlet” but “methodically researched and assembled.” 

 

Its pivotal scene is of McAleer questioning Fox at a 2011 screening of “Gasland”  about his famous flaming faucets. “Isn’t it true,” McAleer asks, “there’s reports, decades before fracking started, that there was methane in the water there?” Aware of these scientific studies, and galled by the question’s ethical implications, Fox declares contradictory evidence “not relevant,” as if documentarians enjoy the same dramatic license as fictional filmmakers.

 

But if facts and scientific proof aren’t relevant, what is?  Are Fox and Damon intent on reverse-engineering arguments from pre-ordained conclusions, or informing the public? As with all types of energy production, fracking involves legitimate risks; why not focus on assuring regulatory best practices?

                     

The truth is technological innovations like fracking have spawned an energy boom, enabling both economic and environmental improvements including: the substitution of low-carbon gas for coal; cheaper energy (a rebate for the poor); cleaner air; new energy jobs; increased governmental revenues; greater energy independence; a drop in U.S. carbon-dioxide emissions to a 20-year low, outpacing Europe whose expensive renewable-energy strategies have underperformed; and improved energy efficiency -- it takes 50 percent less energy to produce one dollar of economic output than it did in 1980.

 

Anti-frackers should learn John Meynard Keynes' lesson: “When my information changes, I alter my conclusions.” What’s irrefutably relevant is that fracking has succeeded where renewable-energy subsidies, government stimulus, and climate treaties have failed, potentially enabling cheap American energy to eventually offset China’s cheap labor advantage.

 

These upside surprises come when entrepreneurial thinkers “dream things that never were and say ‘why not’,” as Robert Kennedy famously said.  One dreamer, biologist Allan Savory, spoke at TED2013 of his odyssey to reverse global desertification, which degrades the land’s ability to absorb water and carbon causing famine, war and climate change. Savory described how he challenged his assumptions – ones that led him to mistakenly recommend killing 40,000 African elephants -- and centuries of conventional wisdom, deriving a counter-intuitive low-tech strategy to use grazing livestock to reclaim the land. At first he met bruising academic scorn, then astonishing and indisputable success.

 

Savory predicts his soil restoration strategy, if employed on half the available land, will enable enough carbon absorption to return to pre-industrial carbon-dioxide levels. Drawing a standing ovation he said, “I can think of almost nothing that offers more hope for our planet, for our children, for their children, and for all of humanity.”

 

Think Again – Aren’t the real celebrities innovators who solve seemingly intractable problems, not eco-stars who peddle fiction?

Restoring the Last Best Hope of Earth

Melanie Sturm | @ThinkAgainUSA Read Comments - 8
Publish Date: 
Thu, 10/25/2012

 

During the Civil War when the union’s preservation and slavery’s abolition were in doubt, President Lincoln roused the nation with his dream “of a place and a time where America will once again be seen as the last best hope of earth.” In rekindling our Founders’ vision, Lincoln helped assure that America would become the freest and most prosperous nation on earth, a status successive US presidents have dutifully maintained, or they were cast aside by voters.

 

As Americans Think Again about President Obama, consider that no president has won re-election amid such economic stagnation, declining incomes, high gas prices and business pessimism.  Living astonishingly beyond our means and more indebted than any other nation in world history, Americans face a reduced standard of living, diminished opportunities for our children, and a weakened capacity to secure our national interests in a menacing world.

 

After trillions in fiscal and monetary stimulus, the 39-month old economic recovery has one-seventh the GDP growth rate of the Reagan recovery in which double-digit inflation and interest rates were also slain. With 261,000 fewer jobs today than January 2009 (despite population growth of 9 million), exploding poverty, government dependency, and income inequality imperil Lincoln’s dream.

 

During the economic turmoil of 2008, Obama sounded Lincoln-esque, promising to “provide good jobs to the jobless…secure our nation and restore our image as the last best hope on Earth.”  But unlike Presidents Kennedy, Reagan and Clinton who understood the benefits of economic growth policies – more and better jobs, larger paychecks, growing tax revenues without tax rate increases, and deficit and debt mitigation -- Obama doubled down on government-centric and budget-busting policies. 

 

Having inherited a government moving in the wrong direction on bailouts, spending, deficits and debt accumulation, Obama floored the gas. Though critical of Bush’s $4 trillion in accumulated debt and vowing to halve the annual deficit by now, Obama has run four successive trillion-dollar deficits – each nearly triple Bush’s average -- while increasing debt nearly $6 trillion to a sum ($16.1 trillion) that exceeds the US economy.  Historically, America’s economy has grown faster than its debt -- until Obama, under whom debt is growing $2.50 for every dollar of GDP growth.

 

With 10,000 baby boomers turning 65 every day, manditory expenditures for Medicare, Social Security and Medicaid are exploding, consuming more annually than the combined cost of the Iraq and Afghanistan wars and TARP bailouts.  Rather than address the looming entitlement crisis, Obama’s budget projects massive deficits and $20 trillion in debt by the end of his second term. So fiscally irresponsible, not one member of Congress -- not even a single Democrat -- has voted to approve either of Obama’s last two annual budgets.

 

Meanwhile, with Democrats in complete control of Congress through January 2011, Obama’s signature legislative “reforms” – Obamacare and Dodd-Frank – ignored Republican solutions, and imposed thousands of complex regulations and new taxes on the private economy, nearly paralyzing job creation and economic growth.

 

Though sold as “Wall Street reform”, Dodd-Frank makes bailouts more likely by designating selected banks “too-big-to-fail” and failing to reform the financial crisis’ real culprits -- housing-finance giants Fannie Mae and Freddie Mac. With smaller banks competitively disadvantaged, lending is down, consumer prices are up, and expensive consultants, like the former chiefs-of-staff to both Dodd and Frank, are in demand.

 

Neither is Obamacare meeting its promises. Insurance premiums are up $2,500 and according to the Congressional Budget Office (CBO), Obamacare will cost nearly twice its original estimate, leave 30 million Americans uninsured, and cause 20 million people to lose their employer-provided health insurance. Additionally, it imposes 20 new taxes on families and small businesses and incentivizes employers to hire part-time instead of full-time workers.

 

Thanks to recent technological breakthroughs, America is now the most energy-endowed nation in the world.  Allowing the responsible development of our resources would generate millions of jobs while turbo-charging the economy and revitalizing distressed communities. Yet despite promising an “all-of-the-above” energy policy while investing $90 billion in uncompetitive green energy companies, Obama blocked the Keystone XL pipeline and reduced drilling permits on public lands by 36 percent, compared to increases of 116 and 58 percent under Bush and Clinton, respectively.

 

Meanwhile, GDP growth slumped to 1.3 percent in the second quarter, but Obama proposes to increase tax rates on “millionaires and billionaires” (individuals and small businesses making over $250,000) to promote fairness, after opposing them in 2010 when the economy was growing at twice its current rate. But how can it be fair to implement a policy that the CBO considers economically injurious and would yield only enough revenue to fund 8.5 days of government spending? Given Obama’s track record, how could another four years of the same policies result in enough economic growth to overcome our economic challenges?

 

Mindful of these challenges and eager to diffuse the debt bomb while preserving entitlement programs for future generations, Governor Romney proposes to expand the private economy with spending, regulatory, tax and entitlement reforms reminiscent of those enacted by Kennedy, Reagan and Clinton – modern America’s most successful economic stewards.  Romney proposes to cut tax rates by 20 percent for all Americans while maintaining the same share of taxes paid by the wealthy. But unlike Bush, he’ll pay for them by eliminating expensive loopholes only accessible to wealthy individuals and companies like GE.

 

Divided as we were during the Civil War, Americans long to be unified by a leader, like Lincoln, committed to expanding liberty and increasing individual opportunity -- the source of human flourishing and America’s promise.

 

Think Again – only by restoring these cultural bulwarks can we pass our children a strong America, and remain the last best hope of earth.

 

 

Elizabeth Warren is Right -- The System is Rigged

Melanie Sturm | @ThinkAgainUSA Read Comments - 4
Publish Date: 
Thu, 09/13/2012

 

Mark Twain famously remarked, “No man's life, liberty, or property are safe while the legislature is in session.” So when Massachusetts Senate candidate Elizabeth Warren proclaimed “the system is rigged” in her prime-time speech at the democratic convention -- Bill Clinton’s warm-up act – it appeared she agreed with Twain and 69 percent of Americans who believe “politicians break the rules to help people who give them money,” according to an August Rasmussen poll.

 

Before assuming Warren blames politicians for rigging the system, Think Again. In fact, as an advocate of an assertive and growing federal government run by benevolent and enlightened policymakers, Warren is out of sync with Mark Twain, public opinion, and America’s founders who feared a system rigged by powerful elites, like the British one they overturned.

 

When Thomas Jefferson asked if a “man cannot be trusted with the government of himself, can he then be trusted with the government of others,” he expressed our founders’ concern that future politicians would encroach on our newly declared natural rights and liberties, leading America into “debt, corruption and rottenness.” Hence, our founders designed a government with limited powers to serve -- not rule -- the people, and to protect our inalienable rights, not confer privileges to special interests. 

 

Today, our founders’ worst nightmares are reality -- the system is indeed rigged. The government’s share of the economy has exploded to 25 percent, dampening the private sector as powerful politicians allow favored beneficiaries to feed at the federal trough. The negative returns from these policies Warren calls “investments” have pushed America down the “global competitiveness” rankings -- from number one in 2008 to number seven today -- according to the newly released World Economic Forum report that blames unsustainable debt, cronyism, regulation, and economic stagnation for the fall.

 

Politicians promised that “investments” like the 2009 Stimulus would revive our economy and reduce unemployment, yet $830 billion later we’re worse off. Even since the official start of the “recovery” in June 2009: economic growth is 40 percent of the historic average for post-recession rebounds; the percentage of Americans with a job is the lowest in decades and the real unemployment rate is 19 percent as four times more workers left the workforce last month than entered it; median household income is down sharply while food stamp usage and federal disability checks have skyrocketed; and poverty rates are near a 50-year high.

 

As she laments the suffering middle class, why doesn’t Warren evaluate whether the activist government policies she advocates actually underlie this despair? Shouldn’t she query why the president’s 2013 Federal Budget garnered no votes in Congress and why the Senate has failed for the fourth consecutive year to uphold it’s constitutional duty to pass a budget? 

 

She'd find politicians fearful of endorsing a budget that borrows $1.3 trillion to fund the government, after paying for mandatory expenditures such as Social Security, Medicare, Medicaid and interest on the debt. But as federal debt spiked $5.4 trillion since January 2009, topping $16 trillion last week — a sum one-quarter of the combined gross domestic product of every country in the world — why isn't Warren proposing a plan to avert the looming fiscal crisis?

 

Unless reformed, Social Security and Medicare won’t exist for younger generations.  Nevertheless, Warren ignores this tragedy preferring to wax eloquent about “a level playing field where everyone pays a fair share and everyone has a real shot”…. because “the economy doesn’t grow from the top down, but from the middle class out and the bottom up.”  But how do we secure a middle class out of government jobs paid for with borrowed dollars?  Does our undisciplined, indebted and special interest-oriented government subvert the private economy, undermining the middle class and those who aspire to it?

 

This is the argument of Senator Tom Coburn’s book “The Debt Bomb,” endorsed by Alan Simpson and Erskine Bowles on whose fiscal commission he served.  Contrary to the narrative that blames lobbyists and gridlock, Coburn contends, “Congress has been an assembly line of new programs and a favor factory for special interests.  Our economy is on the brink of collapse not because politicians can’t agree, but because they have agreed for decades…to borrow and spend far beyond our means… to create or expand nearly forty entitlement programs, carve out tax advantages for special interests, build bridges to nowhere and earmark tens of thousands of other pork projects.”

 

Anxious to prevent an economic calamity worse than 2008, Coburn urges Americans to drain Washington’s stagnant pond, refilling it with public servants committed to un-rigging the system that’s left millions of Americans “on their own,” deprived of jobs and hopes of finding one. Without a plan to solve our economic and fiscal woes, Warren is an accomplice to the rigged system she denounces.

 

Think Again Elizabeth Warren — telling the truth and taking responsibility distinguish great leaders from mere politicians.

Right Stuff Needed for Fiscal Moonshot

Melanie Sturm | @ThinkAgainUSA Read Comments - 4
Publish Date: 
Thu, 08/30/2012

 

Last Saturday, as Americans debated whether Lance Armstrong was a genuine hero after dropping his fight with the US Anti-Doping Agency, another Armstrong – an undisputable American hero -- died. Were Webster’s to pair Neil Armstrong with hero in its dictionary, one needn’t Think Again to fathom the bravery, achievement, and nobility implied by the word.

 

By fulfilling President Kennedy’s audacious goal to have an American walk on the moon within the decade, Neil Armstrong is remembered for the skill, courage, grace under pressure, and innate humility necessary to achieve “one giant leap for mankind,” while crediting legions of dedicated others for the “one small step for man” he took on July 20, 1969.  Upon fulfilling his mission, he didn’t spike the football or parlay fame into power or fortune.  He receded into dignified private life to teach and inspire future generations.

 

In breaking the sad news, NBC’s Brian Williams asserted, “we have lost the last American hero,” as if surrendering America’s heroic destiny to our era’s chaos and controversy. Yet throughout our tumultuous history, Americans have proven “where there’s a will, there’s a way”  -- starting with George Washington, who summoned heroism in his beleaguered troops by crossing the icy Delaware River enroute to American independence.

 

Though Thomas Jefferson warned “The natural progress of things is for liberty to yield, and government to gain ground,” our founders established “a government of the people, by the people, for the people,” knowing it was a precondition to a dynamic, prosperous and free society. We fought the Civil War so this American ideal wouldn’t perish from the earth. Now, with our faith in the American Dream rattled, we face another great challenge.

 

Today we suffer unprecedented levels of economic stagnation, long-term unemployment, and government dependency. Despite a record $830 billion stimulus enacted in February 2009, this recovery (which technically began in June 2009) is the weakest of the 11 tracked since World War II. Stimulus advocates promising the unemployment rate wouldn’t exceed 8 percent (though it has for 42 consecutive months), were also wrong in forecasting a 5.5 percent rate by now.

 

Even since the “recovery’s” start, economic trends have deteriorated: the ranks of the long-term unemployed grew by 800,000; those no longer in the labor force increased 8 million; and food stamp spending doubled to $85 billion. New York Times economics columnist Catherine Rampell reported that median household incomes declined more (4.8 percent) during the “recovery” -- even among the continuously employed -- than they fell (2.8 percent) during the preceding 18-month recession.  Consequently, 85 percent of the much-discussed American middle class report that it’s now harder to maintain their standard of living, according to Pew Research.

 

Humorist PJ O’Rourke said, “giving money and power to government is like giving whiskey and car keys to teenage boys.” Refusing to relinquish their intoxicating power to spend and borrow, political leaders have subverted the national interest by causing four consecutive trillion-dollar deficits. With government spending at stratospheric levels, we charge $41,222 to our children’s credit card every second. At $16 trillion, our national debt is up 50 percent since January 2009, exceeding the size of our economy. When added to future Medicare and Social Security claims, it totals $136 trillion -- an incomprehensible, indefensible, and morally reprehensible sum.

 

Anyone who’s balanced a checkbook -- or watched events unfold in Europe -- understands that red ink turns to blood, particularly when interest rates rise above historic lows. So, how can we trust leaders who won’t see and aren’t planning to avert the fiscal black hole toward which we’re rocketing? Shouldn’t we urge courageous leaders to redirect our perilous trajectory toward a safe landing?  

 

As the cliché goes, “if we can send a man to the moon,” we can restore America’s promise to secure a more stable and prosperous future. After instituting reforms to entitlement programs and its tax code, Canada achieved a remarkable economic turnaround, and so can we. It will require a Kennedy-esque leader to define the challenge as the fiscal equivalent of the moonshot, and to summon the political will for lift-off against fierce gravitational forces.

 

As a firm believer in Americans, Abraham Lincoln said, “If given the truth, they can be depended upon to meet any national crisis. The great point is to bring them the real facts.”  Eager for blast off is a nation of unassuming and reluctant heroes – ordinary Americans.  Spoken to like adults, and with the facts in hand, we have the “right stuff” to enable another “giant leap for mankind.” If this isn’t our generation’s most important mission, what is?

 

Think Again – our children need us to be their heroes.

 


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