Clearer thinking needed

By Richard Olivastro
Posted 3/18/08

Government spending at all levels is unchecked and out of control.

Government programs are too often misguided, and corrective actions ill-conceived.

The inane rationales used by too many officials to support implementation decisions are often …

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Clearer thinking needed

Posted

Government spending at all levels is unchecked and out of control.

Government programs are too often misguided, and corrective actions ill-conceived.

The inane rationales used by too many officials to support implementation decisions are often the result of convoluted, even flawed thinking. Thinking that serves, not the country as a whole, but only to respond to interest group pressures, including the ultimate interest group — themselves.

At best, one would conclude officials are in a “thought rut.” But readers in some regions of the U.S. will likely describe the examples that follow as what results from “stinkin’ thinkin’.

The poultry company Pilgrim Pride will cut 1,100 jobs and immediately close seven of its 50 U.S. chicken facilities and distribution centers, two in Florida, one each in Iowa, Mississippi, North Carolina, Ohio and Tennessee. Pilgrim Pride also sold its turkey production facility in Pennsylvania and announced they will decide within 60 days whether to close or consolidate other U.S. facilities.

When poultry producers “lose money for every chicken grown” (you read that right) and at the same time, consumer prices keep rising, you know something smells — and it isn’t the chickens. In this case, government officials and special interests implemented policies and subsidies to encourage ethanol production that we now know harms businesses and consumers.

Making ethanol requires vast amounts of corn. That drives up the price of raw, canned and frozen corn for consumers, raises the price for consumers buying derivative grain products and the price farmers must pay for corn to feed poultry and other live stock.

To make the impact of “wrong-headed” thinking even worse, ethanol production has other costs in its production process that actually increases the per-gallon cost of gasoline at the pump.

Meanwhile, the 185-nation International Monetary Fund No. 2 official John Lipsky said, “policymakers must ‘think the unthinkable’ and a coordinated global rescue of unspecified dimensions might be needed.”

Lipsky, who was vice chairman of J.P.Morgan before joining the IMF in 2006 added, “the world’s major countries should immediately make contingency plans to adopt far more aggressive public spending to fight a worsening financial crisis.”

Heads up, Folks. Mr. Lipsky is targeting your money. Not just the taxes you have already paid, but surrendering still more of your income.

The recent economic stimulus package, funded by U.S. government borrowing from foreign countries, was the tip of the iceberg. Lipsky’s comments preview what will likely be foisted on Americans in coming months as necessary for world economic stability. UN-type global taxes coming?

Last week, in Washington, D.C., Microsoft chairman Bill Gates pitched the House Committee on Science and Technology that the USA faces “a critical shortage of skilled scientists and engineers.” That is true.

What is Mr. Gate’s solution? He says, “More visas for skilled workers are desperately needed.” In other words, more non-native born people are needed here. So, increase the number of H-1B type visas, effectively ‘in-sourcing’ skills that our education system has failed to produce in sufficient numbers from recent generations of our own citizens.

It also means we will further expand out-sourcing to other countries, in the usual manner, where some jobs are done in other countries, and in a newer, more unusual manner, in which we issue H-1B visas to non-Americans, to enter the United States and fill jobs located here for foreign-owned companies with U.S. operations.

In fact, despite Gates’ comments, USA Today reported that the “average H-1B worker has a bachelor’s degree, was born in India, and makes about $55,000 dollars a year” working here; and, that “many of the companies who hire H-1B visa holders are also from India” but have large U.S. operations.

What can citizens do to get rid of the fog and promote clearer thinking at all levels of government on these and other issues? Start by sending a crisp clear-thinking message to their Senators and Representatives. Here are my thoughts:

1. Stop popping corn into ethanol. Americans need corn in the food and feed supply.

2. Freeze federal government budget ceilings at last year’s levels; cancel all new earmark spending passed during calendar year 2008, reduce all prior earmark project funding by 50 percent.

3. Suspend new H-1B visa issuance immediately; serve notice to current H-1B visa subscribers — no renewals policy; develop accelerated program for those technology companies currently employing five or more H-1B visa subscribers, to (a) retrain/redirect recent American college graduates using OTJ and employer classes; and, (b) redirect current college students to sciences, etc.; those pre-hired by eligible companies that fund remaining tuition via reimbursement will be matched by credit to any prior student loans.

Then, pay close attention to the details of every proposal, local, state and federal, as reported by the media; ask questions of every official and get straight answers.