Occupy Thyself With Responsibility

November 1, 2011

I had earphones pumping music into my head today while working out. On came a Huey Lewis song that got my attention with this lyric; “Takin’ what their givin’ cuz I’m workin’ for a livin’.”

It seems we have people occupying physical space in various cities instead of occupying themselves with work. I wonder how they pay their cell phone bills, not to mention paying for food, clothing, and shelter.

Some complain that they have college degrees and college loans outstanding but can’t find work, well, at least work commensurate with their expectations. I suggest as someone who has been both an employee and an employer that including your “occupy” this or that experience on your resume does not improve your competitiveness in the job market, for any kind of job.

A job exists, by definition, because people voluntarily want to exchange money they earn from their job for a product or service a person or organization produces. A job, by definition, is a defined set of tasks and responsibilities expected to be performed in exchange for pay and other possible benefits to produce a product or service. To work, by definition, is to accept a job. That is, you need to be Takin’ what their givin’ if you expect to be workin’ for a livin’.

Which brings us to Greece.

The majority political party in the Greek Parliament, at least as I write this, is the Panhellenic Socialist Movement party which has given the Greek people what they wanted but not what they can afford.

Greece is over €300 billion in debt and is in financial difficulties in part because successive Greek governments were found to have consistently and deliberately misreported the country’s official economic statistics to keep within the monetary union guidelines (rather than face the music earlier together with the Greek people). Short form, Greek governments lied to their lenders and now want to hold a referendum to see if the Greek people will agree to austerity measures imposed by the lenders they lied to. The other EU governments, by the way, are asking all private (not government) holders of Greek debt to take a 50% haircut on their principal, along with offering the Greek people more debt in exchange for more austerity measures. (If you are not laughing now you should be.)

Which brings us to responsibility.

The circumstance of the “occupiers” and of the Greek people confirm the reality that any socialist or statist government, democratic or not, will fail to effectively improve the lot of its citizens over the long term.

The “occupy” people need to take any job they can find, or create one for themselves.

The Greek people need to take a full haircut on their debt problems.

We need to stop making excuses and start “Takin’ what their givin’ cuz we’re workin’ for a livin’,” embracing both the risks and rewards of personal liberty and the responsibility that goes with it.

Post Script November 5, 2011: It now seems both Greek and European leaders wish to deny the right of the Greek people to vote on whether or not to accept the loans and austerity measures offered by Euro politicians. Fear of the consequences of a voter rejection is not an excuse to prevent a democratic voice on this most critical of issues for the Greek people. In the words of Hunter S. Thompson, you are either on the bus or off the bus. It is a great disappointment that the Greek people will not get to make this choice.

Also, it now seems the “occupy” people have lost control of their protests in some cities to those prone to violence (see: Oakland, CA). The theme of responsibility (and lack thereof) seems more and more relevant to the reality of what is being reported in the media. It is also of note that the tea party demonstrators waved their signs, voiced their concerns, voted accordingly and went back to work, leaving the sites of their demonstrations clean. (I am not a tea party participant, just being observant.)

Defined benefit pension realities

October 18, 2010

The City of Winter Park, Florida has contractual defined benefit pension plans for both our police and fire employees. A recent study done for the city concluded that the “Unfunded Actuarial Accrued Liability” in these defined benefit plans as of October 2009 approached $17,000,000. The terminology is technical but the reality is not. All risks associated with investment returns needed to meet guaranteed pension payouts are born by the taxpayers of Winter Park.

The essential issue here is the guarantee that obligates future residents regardless of future economic reality.

There is every reason to offer public safety employees pension compensation that recognizes the risks they take for the public good.

There is, however, no justification for such compensation to obligate future residents to uncertain costs.

Nationally, we need to renegotiate pension and retirement health care packages for teachers, public safety employees, and all other public employees that fairly rewards their service while sharing appropriate risk with the citizens who fund this compensation.

Here are some defined benefit pension plan resources worth reading:

The Pew Center on the States – The Trillion Dollar Gap

Manhattan Institute – The False Obstacles to Pension Reform

Kellogg School of Management and NBER – The Crisis in Local Government Pensions in the United States

Wall Street Journal – Pension Gap Looms Larger – September 18, 2010

Wall Street Journal Editorial – The Cristie Example – September 20, 2020

Support free market capitalism and the profit motive

September 1, 2010

Last week’s SEC rule opening public company proxies to Director nominations by minority shareholders is another example of a march to compromised capitalism, a condition where every priority other than profit earned in a free market dominates the corporate agenda and is subject to undue influence. We should defend free market capitalism and the profit motive, for ultimately we depend on these principles to provide economic growth, employment, and security.

Increasing employment, paying off deficits, and meeting private and public retirement obligations requires decreases in government spending and increases in private economic activity and private wealth. Yet every important action by our political leadership contributes to the exact opposite result.

Federal debt has increased from $3.4 trillion in 2000, to $6.0 trillion in 2005, to an estimated $9.0 trillion in 2010, and to $16.0 trillion in 2020 based on assumptions that the economy will experience a recovery because it has always recovered before.

The Federal government borrows $787 billion dollars for “stimulus” spending, much of which has a onetime impact but which imposes more debt and interest payments on all Americans, our children, and grandchildren.

The Federal government enacts 2,454 pages of health care legislation that will cost us at least another trillion dollars while driving us toward nationalized health care without even trying market based reforms that would hold providers accountable to each of us for access, prices, and improve the quality of care while motivating continual health care innovation.

The Federal government enacts 2,464 pages of financial legislation (and here) dramatically increasing the regulation of risk in the financial industry while failing to address the ongoing risks of Federal guarantees for home mortgages. Federally guaranteed mortgages total $5 trillion of which $148 billion is currently considered bad debts to be borne by taxpayers (that would be you and me).

The Federal government is planning to increase taxes on dividends, interest, capital gains, and earned income for the highest earning, most productive taxpayers, investors, savers, and consumers beginning January 2011.

The national unemployment rate remains near 10% for those seeking jobs and above 16% including those not bothering to look.

Economic growth is less than 2% and what growth there is results largely from money borrowed for “stimulus” spending. The government tells us over $500 billion of “stimulus” spending has been paid out to an economy that generates $13 trillion dollars of goods and services annually. Where does the next “growth” come from?

State public pension and retirement health care obligations are one trillion dollars in the hole nationally and no one representing these interests seems willing to lessen the costs of this security blanket; a security blanket (or is it a time bomb?) again guaranteed by more debt and interest payments from all Americans, our children, and grandchildren.

Shall we also mention unfunded Federal Medicare and Social Security liabilities?

Virtually all Federal legislation and regulation enacted over the past 18 months (as well as much that preceded it and that is contemplated) greatly expands the Federal deficit, increases taxes, regulatory costs, and uncertainty, and fails to address already unsustainable retirement liabilities. The result discourages work, risk taking, and investment, and drives down the value of private enterprises whose worth we depend upon to fund retirement costs, and whose health we rely upon to generate real economic growth and increasing employment.

Do you want a better job or any job at all? Do you want to secure your retirement benefits and the value of your savings? Do you want a future where your children have more opportunities than you were afforded? If so, support free market capitalism and the profit motive.