Trump Syria Concerns Expressed

Trump Syria Concerns Expressed

By Chris Freind Trump Syria Concerns Expressed

Dear President Trump:

On behalf of many Americans, I am passing along my hope that you make America’s economy great again – really quickly. Otherwise, the Treasury will have to print trillions more in “funny money” to fund your surprising new interventionism – a “quantitative easing” for foreign policy.

After all, it appears that you, in direct contradiction of your crystal-clear campaign promise, are hell-bent on playing policeman to the world. Given what Secretary of State Rex Tillerson just said – “We rededicate ourselves to holding to account any and all who commit crimes against the innocents anywhere in the world” – that’s going to be an expensive proposition, and an unprecedented political quagmire.

But before America’s global gun-slinging commences, I respectfully ask that you consider the following:

1. Where will you start? So you aren’t accused of “continent-bias,” I suggest simultaneously tackling Venezuela, Myanmar, Nicaragua, the Philippines, Chad, Nigeria, Qatar, and Libya. France, too – just because it’s France.

And that’s just on Day One.

Given that around, oh … 80 percent of the world’s nations have people committing crimes against innocents – including not-so-insignificant China and Russia – the initial engagements against those abusers should be wrapped up by June. That’s the “easy” part. It’s American troops being stationed indefinitely “in-country” for nation-building and regime change where things get really complicated.

Caveat: I often implore people to “look in the mirror.” So, in truth, that list of offenders also applies to us. One look at our cities – Chicago, Philadelphia, even your hometowns of New York and Washington – shows the staggering number of innocents slaughtered daily in what are, without question, war zones. The atrocities, including the murder of babies and young children, continue unabated, leading to unimaginable suffering.

Tomahawks won’t work. However, Americans just voted for “regime change,” believing you to be the leader who instills order. Perhaps the president’s time would be better spent solving those escalating domestic problems, rather than creating more quandaries overseas.

2. We’ll have to build a lot more Tomahawk cruise missiles. But at nearly $2 million a pop, they get very expensive. Here’s something to consider: The Syrian attack was more than 1 percent of the cost to build your border wall, so your funding dilemma on that initiative will likely get even dicier.

But when the bombs don’t achieve the objective – actually, what is the objective? – we’ll send military “advisers” into Syria. And of course, troops to defend them. But it won’t end there, because it never does. Never. That’s not speculation, but hard fact. Then come bases, deployed troops, and air wings. (Even more concerning, what happens when we engage the Ruskies in a firefight, shoot down one of their aircraft, or vice versa?)

Mr. President, that strategy hasn’t worked too well for us. As Einstein said, insanity is doing the same thing repeatedly yet expecting a different result.

Further intervention in the world’s most ignitable powder keg, where Mother Russia is firmly entrenched and standing opposed, is insanity.

3. After we further destabilize Syria, culminating in regime change by toppling President Bashar Assad (as some in your administration are advocating), is that when we “declare victory?” And what will that mean? If it’s anything like Iraq and Libya, when America deposed two secular dictators, only to see massive instability and new governments comprised of even worse people, there will be a lot of scratching our derrieres. Being clueless about next steps after creating a dangerous power vacuum is not the path to the presidential Hall of Fame. Just ask W.

4. When will we learn that interventionism and regime change, especially in the Middle East, always produces catastrophic results?

Saddam Hussein was no angel, but an iron-fisted secular leader. He kept extremists at bay; maintained a regional balance of power; was an American ally during the Iran-Iraq war; and, most noteworthy, was a bitter enemy of Osama bin Laden. But we took him out anyway.

Since ousting Hussein, there have been thousands of car bombs in Iraq; yet while he was leader, there were none. Deposing Hussein, the only man capable of maintaining order, was possibly the greatest blunder in a very long list of American mistakes in the Middle East.

Then America took out the non-fundamentalist Moammar Gadhafi, who had been working with U.S. intelligence against terrorists. Alarmingly, it didn’t dawn on us that the rebels we assisted were the same folks who comprised the largest foreign fighting force battling Americans in Iraq. Libya devolved into chaos (remember Benghazi?) after America’s handiwork allowed thugs to gain power.

And now, we are blindly supporting rebels in Syria. True, Assad is a ruthless dictator, but as an avowed secularist, he provided stability by keeping fundamentalists in check. His drawn-out battle with the rebels has provided a safe haven for terrorists in areas captured from the Syrian government. The biggest irony: ISIS fighters in Syria (and Iraq) are using American weapons.

The United States keeps trying to impose its will in the Middle East, and it keeps blowing up in our faces, literally.

5. Not to appear conspiratorial, but what do we really know about the chemical attack? Could a conventional bomb have hit a rebel chemical weapons factory? Definitely plausible. Was it your “Deep State” nemesis, where agents arranged for the attack as a way to drive a wedge between yourself and Vladimir Putin? Or was it Occam’s Razor – the simplest explanation? Were chemical weapons loaded by accident?

Who knows? But clearly, the deliberate use of chemical weapons makes no sense from Assad’s perspective. Just days after the U.S. said it wouldn’t hold him accountable for war crimes, and that the Syrian people would determine their own fate, Assad is then going to gas people and incur the wrath of the world, with amplified calls for his ouster? Seems highly unlikely.

6. Not to insinuate that your military hierarchy and intelligence “experts” are off-target, but A) you have made criticizing them an art form, and B) their trustworthiness leave much to be desired. Many experts think that we actually sunk the USS Maine to spark hostilities with Spain (which in fact led to the Spanish-American War). The Gulf of Tonkin incident, the catalyst for our engagement in Vietnam, was faked. And more recently, the guaranteed claims of yellowcake uranium and WMDs in Iraq – our “justification” for invasion – were totally bogus.

The American people’s healthy skepticism of the intel community’s “findings” is well justified, especially since America has not won a war since 1945.

Minding our own business and not engaging in regime change is not isolationist. It’s common sense.

Americans don’t want another war. Sure, chemical weapons killing 70 are horrifying, but is that worse than conventional bombs killing thousands? Are we, already perceived as “crusaders,” really engaging yet another Middle Eastern country? And after the fact, just as in Iraq and Afghanistan, will we build state-of-the-art infrastructure for another country, while Americans continue to see their bridges collapse, roads crumble and water mains break?

Mr. President, it would be wise to heed the words of Sir Edmund Burke in formulating an exit strategy for Syria before ever entering it: “Those who don’t know history are destined to repeat it.”

Trump Syria Concerns Expressed

SEIU Gets $134.9 Million State Pact

SEIU Gets $134.9 Million State Pact

By Leo Knepper

Suppose that a business owner gave a politician nearly $1 million in campaign contributions and then received a $134.9 million contract. What kind of reaction would expect from the media? Most people would expect wall to wall news coverage and calls for an investigation. If the dollar amounts stayed the same, but instead of a business, the contract went to a public sector/government union why should the public be any less outraged?

Late last week, Service Employees International Union Local 668 (SEIU) signed off on a lucrative three-year contract that they negotiated with Governor Tom Wolf last year. Over three years, the contract will cost taxpayers $134.9 million. When you consider additional pension payments and resulting liabilities from the deal, the price goes up even further over the long term.

The SEIU’s PAC was the largest union contributor to the Governor’s 2014 election campaign. Direct spending and contributions by the PAC totaled nearly $1 million. If you add in the “volunteer” work and get out the vote efforts by the union, the value of the SEIU’s contributions are even greater. SEIU members will see a $5,000 salary increase per year under the new contract. Because the union dues are a based on a percentage of the member’s salary, the SEIU will financially benefit from the new deal as well. If this contract comes as news to you, you’re probably not alone. Despite the union’s generosity in terms of time and financial contributions to Governor Wolf, the labor agreement generated very little press.

In fact, the SEIU contract is only the latest in a long line of campaign contributors who have negotiated with the Governor. Every major government union in Pennsylvania supported the Governor, and will likely support his reelection. Under the current system, unions are on both sides of the negotiating table. Franklin D. Roosevelt opposed government employee unions for this very reason.

The media rightly scrutinizes government contracts with most private vendors who are political donors. Why don’t they pay the same attention to government unions who happened to be the biggest political spenders in the state?

Mr. Knepper is executive director of Citizens Alliance of Pennsylvania.

SEIU Gets $134.9 Million State Pact
Who cares about the taxpayer? Ha ha, not me.
SEIU Gets $134.9 Million State Pact

 

New Civil War As Compromise Becomes Impossible

New Civil War As Compromise Becomes Impossible — Joanne Yurchak sent us the below article from Daniel Greenfield’s blog Sultan Knish. It’s worth repeating. The original can be found here.

By Daniel Greenfield

A civil war has begun.

This civil war is very different than the last one. There are no cannons or cavalry charges. The left doesn’t want to secede. It wants to rule. Political conflicts become civil wars when one side refuses to accept the existing authority. The left has rejected all forms of authority that it doesn’t control.

The left has rejected the outcome of the last two presidential elections won by Republicans. It has rejected the judicial authority of the Supreme Court when it decisions don’t accord with its agenda. It rejects the legislative authority of Congress when it is not dominated by the left.

It rejected the Constitution so long ago that it hardly bears mentioning.

It was for total unilateral executive authority under Obama. And now it’s for states unilaterally deciding what laws they will follow. (As long as that involves defying immigration laws under Trump, not following them under Obama.) It was for the sacrosanct authority of the Senate when it held the majority. Then it decried the Senate as an outmoded institution when the Republicans took it over.

It was for Obama defying the orders of Federal judges, no matter how well grounded in existing law, and it is for Federal judges overriding any order by Trump on any grounds whatsoever. It was for Obama penalizing whistleblowers, but now undermining the government from within has become “patriotic”.

There is no form of legal authority that the left accepts as a permanent institution. It only utilizes forms of authority selectively when it controls them. But when government officials refuse the orders of the duly elected government because their allegiance is to an ideology whose agenda is in conflict with the President and Congress, that’s not activism, protest, politics or civil disobedience; it’s treason.

After losing Congress, the left consolidated its authority in the White House. After losing the White House, the left shifted its center of authority to Federal judges and unelected government officials. Each defeat led the radicalized Democrats to relocate from more democratic to less democratic institutions.

This isn’t just hypocrisy. That’s a common political sin. Hypocrites maneuver within the system. The left has no allegiance to the system. It accepts no laws other than those dictated by its ideology.

Democrats have become radicalized by the left. This doesn’t just mean that they pursue all sorts of bad policies. It means that their first and foremost allegiance is to an ideology, not the Constitution, not our country or our system of government. All of those are only to be used as vehicles for their ideology.

That’s why compromise has become impossible.

Our system of government was designed to allow different groups to negotiate their differences. But those differences were supposed to be based around finding shared interests. The most profound of these shared interests was that of a common country based around certain civilizational values. The left has replaced these Founding ideas with radically different notions and principles. It has rejected the primary importance of the country. As a result it shares little in the way of interests or values.

Instead it has retreated to cultural urban and suburban enclaves where it has centralized tremendous amounts of power while disregarding the interests and values of most of the country. If it considers them at all, it is convinced that they will shortly disappear to be replaced by compliant immigrants and college indoctrinated leftists who will form a permanent demographic majority for its agenda.

But it couldn’t wait that long because it is animated by the conviction that enforcing its ideas is urgent and inevitable. And so it turned what had been a hidden transition into an open break.

In the hidden transition, its authority figures had hijacked the law and every political office they held to pursue their ideological agenda. The left had used its vast cultural power to manufacture a consensus that was slowly transitioning the country from American values to its values and agendas. The right had proven largely impotent in the face of a program which corrupted and subverted from within.

The left was enormously successful in this regard. It was so successful that it lost all sense of proportion and decided to be open about its views and to launch a political power struggle after losing an election.

The Democrats were no longer being slowly injected with leftist ideology. Instead the left openly took over and demanded allegiance to open borders, identity politics and environmental fanaticism. The exodus of voters wiped out the Democrats across much of what the left deemed flyover country.

The left responded to democratic defeats by retreating deeper into undemocratic institutions, whether it was the bureaucracy or the corporate media, while doubling down on its political radicalism. It is now openly defying the outcome of a national election using a coalition of bureaucrats, corporations, unelected officials, celebrities and reporters that are based out of its cultural and political enclaves.

It has responded to a lost election by constructing sanctuary cities and states thereby turning a cultural and ideological secession into a legal secession. But while secessionists want to be left alone authoritarians want everyone to follow their laws. The left is an authoritarian movement that wants total compliance with its dictates with severe punishments for those who disobey.

The left describes its actions as principled. But more accurately they are ideological. Officials at various levels of government have rejected the authority of the President of the United States, of Congress and of the Constitution because those are at odds with their radical ideology. Judges have cloaked this rejection in law. Mayors and governors are not even pretending that their actions are lawful.

The choices of this civil war are painfully clear.

We can have a system of government based around the Constitution with democratically elected representatives. Or we can have one based on the ideological principles of the left in which all laws and processes, including elections and the Constitution, are fig leaves for enforcing social justice.

But we cannot have both.

Some civil wars happen when a political conflict can’t be resolved at the political level. The really bad ones happen when an irresolvable political conflict combines with an irresolvable cultural conflict.

That is what we have now.

The left has made it clear that it will not accept the lawful authority of our system of government. It will not accept the outcome of elections. It will not accept these things because they are at odds with its ideology and because they represent the will of large portions of the country whom they despise.

The question is what comes next.

The last time around growing tensions began to explode in violent confrontations between extremists on both sides. These extremists were lauded by moderates who mainstreamed their views. The first Republican president was elected and rejected. The political tensions led to conflict and then civil war.

The left doesn’t believe in secession. It’s an authoritarian political movement that has lost democratic authority. There is now a political power struggle underway between the democratically elected officials and the undemocratic machinery of government aided by a handful of judges and local elected officials.

What this really means is that there are two competing governments; the legal government and a treasonous anti-government of the left. If this political conflict progresses, agencies and individuals at every level of government will be asked to demonstrate their allegiance to these two competing governments. And that can swiftly and explosively transform into an actual civil war.

There is no sign that the left understands or is troubled by the implications of the conflict it has initiated. And there are few signs that Democrats properly understand the dangerous road that the radical left is drawing them toward. The left assumes that the winners of a democratic election will back down rather than stand on their authority. It is unprepared for the possibility that democracy won’t die in darkness.

Civil wars end when one side is forced to accept the authority of the other. The left expects everyone to accept its ideological authority. Conservatives expect the left to accept Constitutional authority. The conflict is still political and cultural. It’s being fought in the media and within the government. But if neither side backs down, then it will go beyond words as both sides give contradictory orders.

The left is a treasonous movement. The Democrats became a treasonous organization when they fell under the sway of a movement that rejects our system of government, its laws and its elections. Now their treason is coming to a head. They are engaged in a struggle for power against the government. That’s not protest. It’s not activism. The old treason of the sixties has come of age. A civil war has begun.

This is a primal conflict between a totalitarian system and a democratic system. Its outcome will determine whether we will be a free nation or a nation of slaves.

New Civil War Makes Compromise Impossible

New Civil War As Compromise Becomes Impossible

Pension Reform Must Include Funding Reform

Pension Reform Must Include Funding Reform

By Leo Knepper

No matter what pension plan design reforms the legislature enacts for future employees, the Commonwealth will still have a massive unfunded liability. The unfunded liability is the result of over-promising retirement benefits, poor investment performance, optimistic investment return assumptions, but mostly a willful redirection of necessary pension contributions by the Pennsylvania government to other purposes. This gross negligence on the part of elected officials has been bipartisan. It started with the 2001 pension increase signed into law (Act 9) by Governor Ridge and continued through the Rendell years when he signed legislation that purposefully underfunded the pension systems (Act 40 in 2003 and Act 120 in 2010).

Decades of mismanagement have resulted in a combined unfunded liabilities currently estimated at over $75 billion, based on the market value of assets. The longer the unfunded liability persists, the worse it becomes. It’s helpful to look at the unfunded liability as a loan. The annual interest cost on this “loan” is over $5.4B per year. In other words, the unfunded liability grows year after year unless the payment made exceeds interest and the cost of newly earned benefits.  And, just like any other loan we need to be making payments on the principal.

The loan example conveys the basics of the problem. Rep. John McGinnis introduced HB 778 this year to address the unfunded liability. In his co-sponsorship memorandum, McGinnis states:

When Act 120 was passed, the liabilities of PSERS exceeded the market value of its assets by $33.4 billion with a corresponding funding ratio of 57.8 percent. At the close of FY 2016, the PSERS unfunded liability was 50 percent larger at $50.1 billion with a funding ratio of 49.9 percent. Similarly, the liabilities of SERS exceeded the market value of its assets at the end of 2010 by $13.3 billion, with a corresponding funding ratio of 66.1 percent; five years later, the SERS unfunded liability had grown to $20.3 billion, with a funding ratio of 56.2 percent. 

There are likely scenarios where the pension assets will become exhausted in the next 8 to 15 years.  When that happens, benefits paid to retirees may well consume 40 percent  to 50 percent of the general fund.  The consequences for our future only get worse as we delay dealing effectively with this problem. Unless funding reform like HB 778 is included with pension reform, it is unlikely that Pennsylvania will avoid this looming fiscal catastrophe.

Every day the General Assembly does not act, the unfunded liability grows. HB 778 is currently in the House State Government Committee. Please, contact your representative today and urge them to take action.

Mr. Knepper is executive director of Citizens Alliance of Pennsylvania.

Pension Reform Must Include Funding Reform

Pension Reform Must Include Funding Reform

 

Fatties Must Bear Cost For Health Care Reform

Fatties Must Bear Cost For Health Care Reform

By Chris Freind Fatties Must Bear Cost

Three things about health care are universally true:

• It ranks near the top of “important” issues.

• It’s really expensive.

• Damn near no one understands it.

The combination of ignorance and health care’s ever-expanding complexities has resulted in a history of bad policy, where premiums have skyrocketed and coverage has declined. Obamacare, passed in 2009 and upheld by the Supreme Court, was supposed to change that by providing affordable care to every American.

It didn’t.

Despite promises to the contrary, many were unable to retain their preferred physician, experienced unacceptable wait times, and often did not receive the medical care to which they had been accustomed. And instead of physicians primarily focusing on patients – the very reason they chose the medical profession – too many were forced to deal with mountains of bureaucratic paperwork, decimating the personal doctor-patient relationship. Salt in the wound was watching premiums and deductibles continue to climb while health care became ever more labyrinthine.

Despite the broken system, Obamacare ruled the day and reform wasn’t an option. But all that changed with Donald Trump’s surprise victory. Now, repealing Obamacare is legitimately on the table. Or is it?

So as to not put this column’s readers to sleep more than normal, we won’t delve into the technical minutiae of health-care legislation, but instead look at the major areas where reform can, and must, be achieved.

But first, let’s address the white elephant that no one else is: There is no true solution to reforming health care so that it’s affordable for all Americans. None. There are many reasons for this, from our entitlement mentality to costs that simply cannot be controlled. But like our nation’s $20 trillion debt, it is a house of cards that will eventually implode. The best we can hope to achieve is slowing the inevitable and preparing a better system for when the current one collapses.

Two plus two always equals four – whether people choose to believe it. And the hard truth is that America simply cannot afford its astronomical health care costs. Most tragic is that, while everyone talks a great game about “protecting future generations,” so few walk the walk, preferring to “get theirs” as much as possible, to the detriment of our children and grandchildren.

For the last seven years, Republican leaders vowed, above all, to “repeal and replace Obamacare.” When the opportunity finally presented itself, the GOP found itself in complete disarray, with nothing to show but contentiousness within its ranks. Leaders somehow caught off-guard were forced to cobble together legislation that has unflatteringly been labeled “Obamacare-lite,” and which the Congressional Budget Office stated will cost significantly more than Obamacare.

One would have thought that, with so much time, the Republican Party’s best and brightest would have already crafted a bill of common-sense reforms that the whole caucus supported. But they didn’t, and, frankly, still don’t, as the current bill faces stiff opposition on several fronts. And it doesn’t help that President Trump is saddled with an approval rating of just 37 percent – a situation entirely of his own making. Squandering so much political capital in the first 60 days is not a recipe for success.

That said, here are several reforms that would inject market forces into the system to improve care and slow the meteoric rise in costs.

By far, the number one issue that must be on the table is addressing the obesity epidemic. And “epidemic” is exactly what it is, as 36 percent of Americans are obese, and an additional 34 percent are categorized as overweight. It is the largest factor in the spiraling costs that continue to devour ever larger slices of the health care pie. To get our arms around this, consider that more than $200 billion per year – yes, staggeringly, that’s per year – is spent on obesity-related, preventable chronic diseases. In other words, by the next presidential election, we will have spent a trillion dollars just on obesity costs alone. Chew the fat on that, because not even America’s economy can absorb such a monstrosity. And it will get considerably worse as more Baby Boomers – the most overweight generation on record – enters the period where health issues are most prevalent.

Obesity has already caused a massive upswing in cancers, heart disease, diabetes, stroke, high blood pressure, bone issues and arthritis, just to name a few. Vaccines are not as effective in the obese, which compounds health care costs and increases risk to the general population. And obesity results in not just high rates of job absenteeism, but “presenteeism” – lower work productivity when employees do show up. In just a decade, the cost for this decreased and lost productivity is estimated to be upwards of $500 billion annually.

There are a host of other negative effects costing billions more – wider seats and doors in stadiums, amusement parks, and public transportation; larger and stronger toilets in hospitals and buildings; airline lawsuits and countersuits over whether the obese should be required to purchase two seats; and yes, even costs associated with building larger coffins. Perhaps most startling, a study found that one billion gallons of fuel are wasted every year (1 percent of the nation’s total) just to haul Americans’ extra pounds. Given that the average American weighs 24 more pounds than in 1960, airlines are using roughly 175 million more gallons of jet fuel per year just to accommodate our mass. From creating more carbon emissions, which in turn causes more health problems, to increasing business costs, the price of obesity is simply unacceptable.

Taxing foods and sugary drinks is not the answer, as that hurts manufacturers, businesses and employees, while penalizing healthy consumers.

So how do we cut the fat from these massive obesity outlays? For starters, since obese individuals incur 42 percent more health care costs than healthier people, they should bear the bulk of those costs.

This author does not typically favor government mandates, since they often lead to a “government-knows-best” nanny state.

However, a mandate that insurers must screen every individual, every year, to gain health assessments and establish baselines, makes sense. With that information, premiums can be adjusted so that those with self-induced obesity conditions pay more. And that is only fair, since healthier Americans are now mandated to subsidize the unhealthy behavior of the obese. Without incentives to become healthier, the problem will continue to expand faster than America’s waistline.

Some will call this a bigoted “fat tax,” while accusing this author of fat shaming. Wrong.

The obese can have their cake and eat it, too. They’d just pay more to do so. In reality, this wouldn’t be a tax at all, but a reduction in the taxpayer subsidy that they currently receive. How is that any different from life insurers making smokers pay more? Or auto insurers charging young drivers higher rates? Higher risk behavior begets higher premiums.

Those who become healthier by hitting reasonable benchmarks would earn a premium decrease, while those who choose to continue an obese lifestyle would be forced to put more skin in the game. No one is mandating what they can and can’t do, but no longer would their lifestyle choices – notwithstanding the “99 percent” who claim it’s a “thyroid problem” – be swallowed by taxpayers hungry for health care premium relief.

Take a bite out of the trillion-dollar obesity epidemic, and the rest is gravy.

Fatties Must Bear Cost For Health Care Reform

Minimum Wage Hike Hurts Poor

Minimum Wage Hike Hurts Poor

By Leo Knepper

Increasing the minimum wage will hurt the people who can least afford it.

To solve the budget deficit, Governor Wolf’s mathematically magical budget also includes an increase in the minimum wage. He is advocating an increase from $7.25 to $12 per hour. The Governor claims that raising the minimum wage to $12 would generate $95 million in additional tax revenue. There are numerous reasons to be skeptical of this claim and a positive impact of the minimum wage in general.

Advocating for a higher minimum wage plays well with the public as a whole, but it ignores the reality that the real minimum wage is $0.

As the minimum wage increases, automation becomes more cost effective in a larger number of settings. In response to $15 per hour minimum wages in several cities, McDonald’s and Wendy’s have rolled out self-serve kiosks to replace the workers who were taking orders. The government bodies who thought they would reap the rewards of higher wages to tax now tax nothing. Furthermore, there is now a cost to taxpayers for government benefits for the newly unemployed.

While the trend toward automation for low-skill positions is relatively new in fast food, the impact of higher minimum wages on the lowest skilled workers has been the subject of years of research. In reviewing the data, the Federal Reserve Bank of San Francisco found that “the overall body of recent evidence suggests that the most credible conclusion is a higher minimum wage results in some job loss for the least-skilled workers-with possibly larger adverse effects than earlier research suggested.”

A multitude of unintended consequences come from a government mandated versus market-based wage. After a ballot measure increasing the minimum wage passed in Washington state child care costs skyrocketed. Another concern is that the minimum wage will have a disproportionately larger adverse effect on smaller business than larger ones. Who would have an easier time paying for higher labor costs, Walmart or your local hardware store?

No one wants their neighbor to live in poverty. However, the minimum wage and increases in it are not the way to address the problems of poverty or increasing tax revenues. An increase in the minimum wage would cost some people their jobs, shutter small businesses, and drive up consumer costs in Pennsylvania. And, none of those things are good for the Commonwealth.

PS: Have you contacted the General Assembly and Governor about the budget yet?

Mr. Knepper is executive director of Citizens Alliance of Pennsylvania.

Minimum Wage Hike Hurts Poor

Minimum Wage Hike Hurts Poor

Unity Good, Division Bad

Unity Good, Division Bad

By Chris Freind Unity Good, Division Bad

“Oh, that’s madness. The pusillanimity and vindictiveness know no limits. Shouldn’t bygones be bygones? Surely the sophistication of a society can be measured by its tolerance and ability to forgive.”

– Former King of England Edward VIII in “The Crown,” after being informed that, despite abdicating 17 years prior, his wife still would not be invited to Queen Elizabeth’s coronation, purely out of spite.

Have we learned nothing over the years? Where are we, as a people, going? And not just any people, mind you, but Americans – the most benevolent and progressive (small “p”) people the world has ever known.

Yet we must ask if those accolades still apply. It seems inarguable that we deviated from our path of righteousness some time ago, willfully allowing that which sets us apart – civility and respect for the rule of law – to disappear from the American landscape. If we are to ever excise the cancerous cynicism now so pervasive, we must honestly ask ourselves, “Who are we?”

This author implores readers to avoid knee-jerk partisan responses that have become an ingrained part of our fabric, and instead pause to think. If we are sincere about self-reflection, we must seek answers in the one place that never lies: The mirror. Only then can we begin to figure out what we have become.

Lamentably, many Americans have become tolerant in name only, projecting an attitude of “sure, I’ll respect your opinion – so long as it’s mine.” Gone are the days when we would disagree civilly, and use that dissent not as a venue for antagonism, but as the building block to solutions.

And quite frankly, it’s never been this bad.

We arrived at our current state in many ways: Looking at the past through rose-colored glasses; playing the blame game; fearing a future where the gulf between haves and have-nots continues to grow; being afraid of change; and harboring an entitled attitude of “let me get mine.” Combine those proclivities with full-blown social media whipping the masses into a fury, where outright falsehoods are routinely claimed as irrefutable fact, and you have a powder keg ready to blow. Not since the Civil War has America seen citizen poised so stridently against fellow citizen.

The road to unity – not the trite sound bite so many mindlessly invoke, but true unity as one America – can only start when people step back and take stock of why we are so “valiantly” demonizing each other.

And yes, while that begins with the president, it certainly does not end with him, for we’ve been on this path long before Donald Trump came onto the scene. Failure to see that we are all at fault will only accelerate our decline as the world’s beacon of light. Consider:

• Longtime friendships have completely dissolved over the election, replaced by total silence or acrimonious battling. That’s insane. And we’re not just talking about amorphous Facebook friends, but people with whom we grew up — colleagues, neighbors, family members. What political disagreement can possibly be worth that price?

• Constructive dialogue has been replaced with nonstop protests, bans and boycotts. But to what end? Sure, those things are our right to do. But that doesn’t make them the “right” thing to do.

So Nordstrom dropped Ivanka Trump’s fashion line. Maybe they did it because sales were declining. Or because its leaders don’t like Donald Trump. So what? If you like Ivanka’s brand, buy it somewhere else. If you want to “punish” Nordstrom, don’t shop there. But why the furious push to boycott? Don’t we have bigger problems to solve than worrying about a billionaire’s daughter? Has it become standard practice to protest and boycott everyone with whom we disagree? Why can’t we just move on with our lives to make America even greater?

Nope. Instead, many Trump supporters are calling for more boycotts, including Coca-Cola and Budweiser because of “diversity” content in their Super Bowl ads. Time to get a life.

And then we have Under Armour models and spokesmen who took issue with the CEO’s statement that President Trump was a “real asset” for American business, leading to the CNN headline: “Under Armour tries to recover from Trump compliment.” Have we stooped so low that companies now have to “recover” from an innocuous comment? Since when do employees call the shots about what their boss can and cannot say?

Not to be outdone, anti-Trumpers felt compelled to burn their New Balance sneakers in a display of solidarity after an executive made a positive statement about the president. Let’s get this straight: Millions around the world have no shoes, but these protesters think it’s morally acceptable to burn shoes costing more than many families make in a year?

• Hillary Clinton called upon all Americans to respect the election results. Yet millions still refuse, setting the horrendous example to our children that we should only respect rules so long as they’re favorable to us.

No one is obligated to support the president, but as Americans, we should respect him and the office he holds – not shout obscenities and give him the middle finger. That is unacceptable. As is the action of the New England Patriots’ players refusing to attend the White House ceremony honoring the Super Bowl champs – because they don’t like Mr. Trump. Get over yourselves. He’s the president. Boycotting such an amazing opportunity shows their total lack of class.

• There is a movement to boycott and even cancel the annual White House Correspondents Dinner – a lighthearted affair dating back to 1921. To have such disregard for tradition, and to create animosity where there needn’t be, sets a horrible tone. How will children learn to interact together at school, play, work and on the ballfield when adults act so childishly? And that admonishment also applies to President Trump. He absolutely should attend.

• Our behavior has not been lost on our youth. They’ve become more emboldened to talk back to their elders and disrespect authority.

• And we are hearing talk about impeaching President Trump. So now, when we don’t like a president, we should call for impeachment, despite zero justification? Where did our common sense go, and why are we so hellbent on destroying ourselves and our children like this?

Our culture of disrespect is dividing us like never before. If our children are ever to have a peaceful and prosperous life, we must demand that civility and tolerance once again become the cornerstones of our society.

And that’s worth tweeting.

Unity Good, Division Bad

Pension Crisis Can Be Solved

Pension Crisis Can Be Solved

By Leo Knepper

Most people have heard the term Ponzi scheme and have a vague sense that the victim of the scheme is getting ripped off. In an actual Ponzi scheme, early investors see a substantial return on their investment. What they don’t realize is that the money they are getting is money being put into the investment by new investors. The system continues working as long as enough new investors come in to pay the people who were there before them. The architect of the scheme, never admits that this is what is happening and eventually the system collapses.

As noted by Chris Comisac at Capitol Wire (paywall), the description of a Ponzi scheme and a description of the state pension system by House Minority Leader, Rep. Joe Markosek are remarkably similar. In a recent email Rep. Markosek said:

“If Pennsylvania decided that 18 blue moons from now it would no longer offer retirement benefits for teachers and state employees … And the commonwealth’s debt was still $65 billion … Taxpayers would still be ‘on the hook’ to pay that $65 billion. BUT … Teachers and state employees would no longer be contributing their share (something they’ve always done while policy officials haven’t, until this fiscal year) and it would take taxpayers even longer to pay down that bad pension puppy.”

In other words, money coming in now is paying the unfunded liability; without that new money, we wouldn’t be able to pay people who are about to retire. When Comisac followed up with Rep. Markosek’s staff, they were quick clarify the statement and make sure that everyone knew that the Representative didn’t mean it was a legalized Ponzi scheme.

It is worth looking at a longer excerpt from Comisac’s analysis to drive home exactly what is going on; the emphasis is CAP’s:

“However, the claim that closing the current defined benefit plan, either to completely eliminate the DB plan for new employees or replace it for new employees with something like a 401(k)…would bring about the collapse of the closed DB [defined benefit] plan is simply ridiculous.

“First, the systems are currently in a state of negative cash flow, meaning, just like Fox wrote, “the systems must liquidate assets to pay bills,” and that’s with no closing of the plans or changes by SERS and PSERS to their pension assumptions – just the bad funding policies the systems currently employ.

“Second, closing the system doesn’t limit cash flow into the system any more than it’s currently being limited by not closing the system.

“If the DB plans were closed, the people in that plan at the time of closure would continue to contribute to their plan (as well as their employer on their behalf), with no additional funding needed from any of the people to be hired in the future who would be in a different retirement plan.

“Of course if that closed plan employs unsustainable assumptions upon which all the contribution rates for employees and employers are based, well then there could be a big problem – but that has nothing to do with the plan being closed and everything to do with how the plan was designed.”

That last part is why CAP has been adamantly opposed to a “hybrid” pension plan that combines defined benefit (DB) and defined contribution (DC) elements. Some politicians and government union officials bring up the specter of “transition costs” as a reason to avoid switching to a pure 401k style DC plan. They’ve never once given an example of a private sector employer citing transition costs as a reason to keep offering pensions. A DC plan is the best way to protect beneficiaries and taxpayers.

As long as there is a DB plan, politicians will control what constitutes fully funding and what assumptions are made to determine liability. There is nothing to stop the General Assembly from making politically-driven assumptions about return on investment, life expectancy, and other factors that impact the liability. The further politicians deviate from reality in an attempt to enrich themselves and other government employees, the more likely it is that the money won’t be there to pay for their promises. Promising a lavish retirement is much more likely to get you votes than paying for it will. And, that bill is coming due.

Mr. Knepper is executive director of Citizens Alliance of Pennsylvania. 

Pension Crisis Can Be Solved

Pension Crisis Can Be Solved

Magic Wolf Claims Spending Cut With Higher Budget

Magic Wolf Claims Spending Cut With Higher Budget

By Leo Knepper

Magic Wolf Claims Spending Cut With Higher Budget By Leo Knepper
Magic man says he’s cutting while adding.

On Feb. 7, Gov. Wolf gave his latest budget address. Since he has his eye on re-election, this was the Governor’s most realistic budget to date. There are still a lot of problems with what he’s asking for, but it’s much less terrible that what he has wanted in the past.

 

For starters, Wolf acknowledges that there is room to cut spending and this is a step in the right direction. The problem arises when we look “under the hood, ” and then the cuts disappear. The state budget is made up of several different parts: the general fund, special funds, federal funds, and other funds. These various parts all add up to give us the total operating budget. The current year’s total operating budget is $80.1 billion. In his budget address, Gov. Wolf notes that there will be a $3 billion deficit next year. He purportedly solves the problem with $2 billion in spending cuts and “savings initiatives” and increases taxes by $1 billion to make up the difference.

Let’s direct our attention to Gov. Wolf’s spending “cuts.” If the current budget is $80.1 billion and the Governor’s proposed budget cuts $2 billion in spending, the proposed budget should be $78.1 billion. Here is where the magical math comes into play. Instead of being $78.1 billion, the Governor’s proposed budget is $81 billion, an increase in spending of nearly $900 million. How does a $2 billion cut turn into a $900 million spending increase?

The purported spending cuts turn into a spending increase due to “baseline budgeting.” In baseline budgeting, the previous year’s budget is the starting point and the next budget increases from that point by a certain percentage. In other words, politicians like Gov. Wolf can claim they are cutting spending, but in reality, they are only increasing it by a smaller percentage than they wanted. It’s the equivalent of Orwellian newspeak. Gov. Wolf and others rely on the ignorance of taxpayers to get away with it.

If the Commonwealth spent $2 billion less next year than they are this year, then there wouldn’t be any need to discuss tax increases. Please, contact Gov. Wolf and the General Assembly immediately. Tell them that cutting spending means cutting spending and not making it grow more slowly.

Mr. Knepper is executive director of Citizens Alliance of Pennsylvania.

Magic Wolf Claims Spending Cut With Higher Budget

Wolf Prison Closing Political Move

Wolf Prison Closing Political Move

By Leo Knepper

As surely as night turns to day, politicians make decisions to improve their chances of re-election. For Governor Wolf, that means a proposal to close two state prisons. Just like his move to close Unemployment Compensation call centers was politically charged, Wolf’s decision to close prisons is also politically motivated, and it isn’t just Republicans who are making that complaint:

Wolf Prison Closing Political Move
Can this man do anything right?

“On Monday, another budget fight took shape during a Senate hearing in which Democratic and Republican lawmakers accused Wolf of playing politics with the safety and economic security of their communities…

“‘Why does this decision have to be made so fast?'” asked Sen. Wayne Fontana, D-Allegheny, whose district includes a prison in Pittsburgh.

“The facilities have to be empty by July 1 to to [sic] meet the full budget savings in the 2017-18 fiscal year, [Corrections Secretary] Wetzel replied.

“‘That’s the political reason,’ retorted Fontana, who said he did not believe the savings estimates if the prison employees are offered jobs elsewhere.”

Governor Wolf is trying to erase from voter’s minds his last two years of tax and spend budgets by proposing modest spending cuts. His targets thus far have been smart from a political perspective: two prisons, two mental hospitals, and reduced spending on economic development are targets that were sure to garner objections from Republican lawmakers. With a $2 billion deficit, Wolf is proposing small cuts that his opponents will object to; giving him the opportunity later to say “I tried to make spending cuts, but the General Assembly wouldn’t let me. I guess we’ll have to raise taxes.”

If we ignore the Governor’s political motivation in closing the prisons specifically, does it make sense from a policy perspective?

Although the union representing Corrections Officers would disagree, closing the prisons is the right choice from a fiscal standpoint. According to the Commonwealth Foundation, the Pennsylvania state prison system will be 92 percent full if two prisons are closed; that allows enough room for an uptick in the inmate population.

Now that the floodgates are opening for cost cutting, we hope that the next item on the chopping block is the $250 million from the “Race Horse Development Fund.”

Mr. Knepper is executive director of Citizens Alliance of Pennsylvania.

Wolf Prison Closing Political Move