Puget Sound Liberals Weekly Newsletter #141

Enhancing Freedom, Opportunity and Cooperation in Puget Sound and Beyond

Through informing and networking Liberals and Liberal Organizations.

 

Our vision is hundreds of thousands of well-informed Puget Sound Liberals working together.

 

   2500 members                                                               September 26, 2008                                                                                                                                      

 

 

 

 

                                                     

Our Website                                   Our  Editor                  To Unsubscribe

 

                        Table of Contents  *Featured Articles

 

About Puget Sound Liberals

Opportunities, Petitions and Feedback

 

Commentaries from Our Members

Susan Harmon On Jason Osgood Smear

Ray McBain Recommends New Naomi Wolf Book

Dick Burkhart: No Bailouts without Reform

Jack Smith: a John McCain Housing Crisis Solution

Penny Miller on Helping the Obama Campaign

Joanne Gainen on Calling Talk Radio

 

Liberals and Democrats Links to the Beef

Democrats Are On a Roll*

What We Must Now Do*

 

State and Local  Links to the Beef

Endorsements for General Election Candidates

Burglary Prevention Advisory

 

Nation and World  Links to the Beef

Responding to Our Economic Crisis*

Restoring Credit Is Immediately Necessary*

Our Most Important Task Is Creating Jobs*

Stopping Fraud*

Restricting Speculation*

Producing and Ameliorating Employment Shifts*

 

Our Liberal Spirit

Making Things Simple*

 

Recommended Books

 

 

 

 

Our Political Values

 

Our Political Priorities

 

·       Fair Clean Elections and Open Government

·       Fair Taxes and Competent Spending

·       Investment for Productivity

·       Quality Health, Education, Jobs, Income

·       Environmental Protection and Energy Independence

·       Security and Equal Rights

·       Justice and Peace Everywhere

·       International Cooperation and Leadership

 

Conservatives oppose all of these

 

     Let’s End Our National Nightmare

 

         Let’s Restore Our American Dream

 

More on Conservative opposition to our American Dream

 

 

Washington State’s 4 Major Needs

Federal Funding for Health and Education

·       A Progressive Income Tax

·       Public Campaign Financing

·       Replacing Republican Legislators

 

 

Quote of the Week

 

Keep It Simple, Stupid.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Calendar of Events                           

 

King County Democrats - LD Meetings            Some 2008 Legislature Lobby Days

 

Thurston County Progressive Net                  Western Washington Fellowship of Reconciliation

 

Alliance for Democracy                                Democratic Underground.Com                          

 

Sierra Club Cascade Chapter Calendar           Cool State Washington

       

Washington Public Campaigns Calendar          Town Hall Seattle Calendar

 

Washington State Labor Council                    Whatcom County Peace and Justice Calendar 

 

Wallingford Neighbors for Peace and Justice – Friday Night Movies      Liberal films on PBS

Conversation Cafe      Drinking Liberally                             

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Calendar of Events

Friday, September 26 at 5 PM at Rick Hegdahl’s home (104 - 165th Avenue NE) – Lake Hills Liberals Salon, watch and discuss First Presidential Debate.  Bring beverage, fruit, cheese, crackers, etc

Friday, September 26 at 7 PM at Gibson Hall (105 Newport Way, Issaquah) – American Democracy Movie Night featuring “Recount” with Kevin Spacey and Laura Dern, about 2000 presidential Florida election recount, hosted by 5th Legislative District Democrats. Cancelled so people can watch presidential debate.

Saturday, September 27 at 5 PM (Social), 6:30 PM (Dinner and Program) at South Seattle Community Center Jerry Brockey Center (6000 – 16th Avenue SW, Seattle) – Washington Physicians for Social Responsibility Annual Dinner, with keynote speaker former U.S. Attorney General Ramsey Clark.  $75.  To register or for more information.

Saturday, September 27 at 5:30 PM at Carrie Bogner’s home (1120 – 24th Avenue East, Seattle) – inSPIRe Fundraiser for Barack Obama and Christine Gregoire.  A night of food (tuna and Alaska salmon), friends and fun.

Friday, October 3 at 7 PM at Rainier UU Center (835 Yesler Way, Seattle) – First Friday Forum: The Vision of Van Jones. Global climate change, economic opportunity and green jobs.  Come at 6:30 for coffee and visiting.

Saturday, October 11 at 9:30 AM – 3:30 PM at Holy Trinity Lutheran Church (8501 SE 40th Street, Mercer Island) – 8th Political Will to End Homelessness Annual Conference, with keynote speaker King County Executive Ron Sims.  To register.

Saturday, October 11 at 6:30 PM at Sharon and Will Creeden’s place (1661 Harbor Avenue SW #202, Seattle) – inSPIRe Social Potluck and discussion, lead by Bob Watt, Seattle Deputy Mayor and President of Greater Seattle Chamber of Commerce.

Friday, October 17 – 19 at Evergreen College (Olympia) – Peaceworks Conference 2008  For More.

 

Opportunities, Petitions and Feedback

 

Communication with Our Members and Feedback

 

Here’s where many of our links come from: Alternet, Common Dreams, the New Republic, Our Future Today, PolitickerWA, the Progress Report, Sightline Institute, and Stateside Dispatch each send me emails containing up to ten links per day.  Various political, civil liberties, peace, environmental, children’s, women’s, labor, veteran’s and other organizations send me several links per week, for information and petitions.  I also get numerous requests for donations, which I seldom put in our newsletter to avoid overwhelming you.  . 

 

Opportunities

Useful Websites: contacts, maps, community organizing tools, and more.

 

Petitions and Donations

Tell Secretary of Treasury Paulson that your $700 Billion proposal must be drastically changed.

Tell Dept. of Health and Human Services not to consider contraception equivalent to abortion.

See other Planned Parenthood advocacy petitions.

Urge Congress to find Karl Rove in contempt.

 

Commentaries From Our Members

 

Susan Harmon On Jason Osgood Smear

 

Are You planning to write anything on the horrendous smear of Jason Osgood by Republicans and Democrats are doing nothing about King County Elections director violating election laws by helping in this outrage?

 

I think what concerns me the most is the lack of outrage from the powers that be in the DEMOCRATIC party. Why isn't anyone calling for the resignation of the director of elections? She has broken the law and violated the conditions of her employment.  I'm amazed at the roar of silence. It's as though the very idea of standing for justice is abhorrent to those who can actually do something.  Susan Harmon

 

The following appeared in our August 22 newsletter:

Smear Campaign Conducted against Jason Osgood

 

Jeff Upthegrove alerted me that: A smear campaign has been conducted against Jason Osgood, Democratic candidate for our Washington State Secretary of State.  Originating with a staff member of his Republican opponent Sam Reed, a false rumor has been passed on by Director of King County Elections Sherril Huff and King County Council Member Dow Constantine to negatively influence Democrats who should be supporting Jason Osgood.  Read Jeff Upthegrove’s blog for more details about this sordid story.

 

46th LD PCO and Sergeant at Arms and Washington State Progressive Caucus Treasurer Barbara Whitt also emailed me as follows: Have you heard about what the King County Director of Elections did to Jason Osgood.  I want to do all I can to raise hell on this issue and could use some good suggestions or help.”

 

I want to remind everyone that electing all of our Democratic candidates for state offices is important to demolish the Republican farm team.  Jason Osgood’s election to become our Secretary of State is especially important since our Secretary of State is also our states chief elections officer.  Dave Thomas

 

Ray McBain Recommends New Naomi Wolf Book

 

Naomi Wolf's 2007 book The End of America: Letter of Warning to a Young Patriot has an excellent summary of the danger we now face in America with analogies to the history of Germany, Italy, Argentina, et al. I highly recommend this book to the intelligent crowd that reads your newsletter.  I have heard her speak and I must state that she is not an alarmist, she is telling us the events in the US today that are leading us toward fascism. I heartily believe that the developments she describes are leading toward that goal. Not that we will get there.

 

If Obama gets elected, I expect the 800 or so signing statements signed by Bush (the puppet who now holds the office of President) will be rescinded. If not, then we will have something more to worry about.  Cheney (puppet master) is the leading advocate of abrogation of constitutional protections by the president. Others include Karl Rove. We must be wary and realize not only the opportunities but also the dangers of our actions. Better forewarned than surprised.  Ray McBain

 

Dick Burkhart: No Bailouts without Reform

 

Want to send a message to Congress and the White House about all these taxpayer bailouts of rich speculators?  Here's a constructive suggestion:

 

No Bailouts without Financial Reform

1.   Tax unearned income (capital gains) more than earned income

2.   Tax wealth (e.g.,  2.5% annual tax on wealth over $5 million)

3.   Prohibit speculative practices such as selling short or long

4.   Ban unregulated financial institutions such as hedge funds and private equity firms

5.   Work with other nations to develop a new global financial order, based on a currency and on lending backed by environmentally and socially responsible productive assets and practices

Dick Burkhart

 

 

 

Jack Smith on a John McCain Solution to Our Housing Crisis

 

The problem with the economy started with the housing/mortgage market. John McCain has so many houses he doesn't even have an official count.  To solve the economy/housing issues, why not have McCain start buying more houses.  Our economy will be solvent within the week.  But, say what you will, the rich people will be the beneficiaries.  Some things never change, no matter how you try.  Have a nice day.  Jack Smith  Vote for Obama!

 

Penny Miller on Helping the Obama Campaign

 

As you probably know, I've been volunteering for the Obama Campaign for several months now.  I hope you will volunteer as well, in the last days of this critical campaign.  I began volunteering by going into the Bellevue office and making calls from lists provided me by them.  Then, one Saturday a few months ago, I went out walking my neighborhood, also from lists provided to me by the campaign.

 

Then, a few weeks ago, the national Obama Campaign released a new online process by which I could sign up to be a "Neighborhood Leader" and print my own walking or calling lists from my home computer!  (It is a very cool Web-based software that was developed by one of the four founders of Facebook, a man who is volunteering his technical ability to the Obama Campaign.  You print out your list, make your calls or knock on doors, and report your contacts by doing your data entry right from your computer!).  NOTE: They just added the ability for women volunteers to contact undecided women, which I'm going to try tonight. 

 

To get started, please contact either Pat Devney or Joe Loeffler, the two Obama staffers for the 4 Districts in Eastside King County (the 5th, 41st, 45th & 48th).  Their telephone # is 425-453-5561 in Bellevue.  If you want to become a Neighborhood Leader, they can tell you when the next training is.  Or if you don't want to go into the office, I'm sure they'll give you the information you need to get started, right over the phone.  If you don't want to walk or call, I'm sure they can find something for each and every one of you to do.

 

The campaign timeline is as follows: 

·       NOW till Oct 4: Register new pro-Obama voters

·       NOW till Oct 16: ID pro-Obama voters (They just added a woman-to-woman calling campaign)

·       Oct 17 to Election Day: GOTV (Get out the Vote by contacting these pro-Obama voters to VOTE!)

 

It's basically all hands on deck right now, so if you can spare a couple hours (or more), please make that call.  It's really, really easy to do, and very rewarding to find voters who think like you do.  And you'll come away from this experience with the knowledge that you participated in probably the most important election in your lifetime.  Our country cannot take another 4 years of Republican rule, especially in the White House.

 

I'd also recommend that you sign up at www.my.barackobama.com and browse around.  You'll see that you can sign up for house parties, events, volunteer and social activities.  You'll be amazed how many others have already come forward to win back America.  Whether you can or cannot participate yourself, please send this email along to others you know (including your children or grandchildren) who are passionate about electing Barack Obama as President. 

 

As Barack said:  This is our time!  This is our moment when we take back America!  Anything you do would be appreciated by the campaign.  Thank you so much.  Penny Miller

 

Joanne Gainen on Calling Talk Radio

 

I received an email soliciting donations on behalf of Sarah Palin, so of course I surfed over to their web site to see what they are up to.  Prominent on the site was a “Call Talk Radio” link: http://www.gop.com/ActionCenter/CallTalkRadio/

 

I wondered if the Democrats had anything like this so I checked Obama’s site and DNC.org and found nothing. I googled “calling talk radio,” and within the top 10 I found a link to some information on the Media Matters web site, with advice and transcripts of some of the latest offenses. I did find one example that may be a Democrat but he did not even identify himself as such!

http://www.martinheinrich.com/action/talkradio

 

I think we need something like this to encourage Liberals to call these shows, especially the conservative-leaning shows, and to help them be effective when they call.  I found lots of examples with advice and phone numbers:

http://www.wvgop.org/GetActive/CallTalkRadio.aspx

http://www.calltalkradioforron.com/resources/900.htm

http://radio.suite101.com/article.cfm/how_to_call_talk_radio

http://mediamatters.org/items/200509220006

 

From the Libertarian Party I found this info for Ron Paul supporters:

http://www.lp.org/call-talk-radio

http://www.lp.org/issues

 

They include talking points:

http://www.calltalkradioforron.com/index.html

 

Do you think there’s a need for some action on this front? If you’d like to address it, I’d be glad to help out.  Thanks again for all you do!  Joanne Gainen

 

Liberals and Democrats

 

Democrats Are On a Roll

 

Our Media Are Exposing McCain Campaign Lies

Our commercial media pundits have finally been unable to ignore the blatant lies of John McCain’s campaign.  They are now documenting and pointing them out.  Even a few Republicans with integrity are expressing their disgust.  For more.  For more.

 

Sarah Palin’s Star Status Is Fading

Under scrutiny from the media, Sarah Palin seem less and less like Ronald Reagan.  It has become obvious that she is unqualified to be president.  She is not even qualified to be John McCain’s nurse.  She is avoiding the press.  She is whining about their scrutiny.  Women’s groups are pointing out her anti-women ideology.  Campaigning on her own would subject her to more scrutiny.  Campaigning with John McCain, she overshadows him.  She may still be favored by many Conservative Republicans.  But others who are more Independent are increasingly viewing her unfavorably.  For more.

 

Our Financial Crisis Exposes McCain’s Economic Wrong-Headedness

John McCain is flailing around with a new story every day, blaming others and Barack Obama for our present financial crisis, while ignoring his own role of supporting deregulation and easy credit.  He is primarily attempting to use our financial crisis for political gain. 

 

Barack Obama has met with his group of varied financial advisors.  He has informed us that he will not interfere with the deliberations of those government officials and legislators who are dealing with our current crisis.  For the time being, Obama will primarily stick with his previously expressed economic proposals, which include expanding regulation. 

 

I agree with Arianna Huffington that Obama needs different advisers from Clinton Administration officials Robert Rubin and Larry Summers who helped create our problem.  My favorites are Joe Stiglitz on national economic policy, Robert Kuttner on deregulation, and Kevin Phillips on our current financial crisis.

 

We Have the Disciplined Campaign, Money and Grass Roots Organization

We have often commented upon these positive factors.  Note that Barack Obama’s ability to create and manage his campaign demonstrates his managerial ability.  Just as John McCain’s topsy-turvy campaign demonstrates his lack of managerial ability.  See 9/21 Daily Kos Commentary.  For more.

 

What We Must Now Do

 

Join our Barack Obama – Democratic Party campaign.  Volunteer and contribute to its various components.  Give particular attention to less publicized races, such as our state legislators and our state government officials other than our governor. 

 

Canvass your relatives, neighbors, colleagues, friends and acquaintances.  Ascertain which are likely to vote for Democrats.  Check to see that they are registered and vote.  Stay away from Republicans, in hopes they forget there is an election.  If each of our members would stimulate 4 voters to vote who otherwise wouldn’t have, that totals 10,000 votes, enough to decide close races such as the 2004 Cantwell race and the 2006 Gregoire race.

 

Here’s the Beef

Great election videos.

Have you noticed that President Bush is missing in action during our financial crisis?

Michael Reagan says “Welcome back Dad.” to Sarah Palin.

John McCain recognizes his Washington Insider connections and support for President Bush (video).

John McCain considers health care, education, alternative energy and foreign aid a waste of money.

John McCain environmental record is terrible (video).

Poor John McCain.  Reality is changing so fast, he can’t change his story fast enough.

All the reasons we’re supposed to reject Barack Obama actually apply to Sarah Palin.

Seattle Times endorses Barack Obama for President

A Conservative criticizes Bush and reluctantly admits the need for regulation.

Our commercial media are afraid of being viewed as Liberal.

 

State and Local

 

Endorsements for General Election Candidates

 

To see all of our Washington Tax Reform Commentaries in one document.

 

Burglary Prevention Advisory

 

Just a "heads-up" on a recent spike in residential burglary activity. After a relatively quiet spell of one or two residential burglaries per week, we have just received five (5) reports of single family residential burglaries within the past 24 hrs. The locations affected are all over Bellevue… and no, we haven't arrested the suspect(s) yet.

 

Please remember to leave your house in a condition as if somebody is still at home. Blinds and drapes OPEN during the daytime. Lights ON INSIDE during the daytime. Car parked in driveway near front door. Garbage cans and newspapers brought in. A discreet radio on inside and barely audible for somebody standing at your front door.

 

All these burglaries occurred during the daytime. All involved doors that were forced open with inadequate strike plate screws or lock mechanism. Swap out your 1.5" deadbolt strike plate screws with 3" screws or better yet, install a $10 extended strike plate that has 4-6 screws.

 

Regards,  Detective and Crime Prevention Officer Michael Chiu, Bellevue Police Department

 

Here’s the Beef

See who’s filing to run for Washington state and federal offices.

Barack Obama endorses Darcy Burner.  Hopefully his voters will vote for her.

Joel Connelly tells us to support candidates for state offices.

Governor Christine Gregoire responds to looming revenue shortfall.  For more.

See Northwest Progressive Institute commentary on Gregoire – Rossi debate.

More homes are needed in single-family zones to accommodate increased Seattle population.

Western Climate Initiative should auction higher proportion of pollution credits.

Spokane, Boise, Bend, Walla Walla and other inland cities are right sized.

 

Nation and World  

 

 

Restoring Credit Is Immediately Necessary

 

Credit is necessary for investment and purchase of expensive durable consumption items.  We especially need investment capital for creating the jobs described below.  We also need to provide capital for durable consumer purchases by those who can afford them.  Especially houses.  Without credit, our economy will suffer a great depression.

 

An increasing number of our financial companies are failing.  Highly leveraged and burdened with securities which contain unknown mixtures of performing and non-performing housing loans, they are unable to borrow or sell their loans.  As some fail, their creditors are also threatened.  Failure of large financial companies threatens widespread failures.  Our present financial agencies have greatly restricted their provision of credit.  Inhibiting both the provision of unqualified loans (which is good) and of qualified ones necessary to maintaining our economy (which is bad).  For more.  For more.

 

On a case by case basis, our government has already committed $800 billion to bailing out failing financial companies.  But half of our non-performing securities have not yet been accounted for.  With no action to protect the financial companies that hold them, they will surface over the next year to continually threaten our credit and economy. 

 

Finally getting it, our government is now considering committing another $700 billion.  $1 billion is $3.30 per U.S. person.  $700 billion is $2,300 per U.S. person, $4,600 for a two person household, $9,200 for a four person household.  For more.  For more.  For more.  For more.  For more.  For more.  For more.  For more.

 

We Must Restore Credit by Buying Securities Cheaply from Failing Financial Companies.

The cost to our economy of doing nothing to restore credit would cost us more than $2,300 per person, in lost jobs, lost innovation, lost savings and more.  Either way, we are paying an enormous price for the deregulation ethos and corrupt self interested lobbying by financial companies that has infected both Republicans and Democrats.  For some history.  Also see our newsletter issue #136.  Notice that the Bush Administration is asking for almost unlimited authority to use the $700 billion without congressional oversight.  Nor has anyone proposed an investigation of how we got in this mess.  To prevent future bubbles, we need to end our misguided assumptions and abuses. 

 

Our government must establish an agency or agencies similar to the Resolution Trust Corporation which in the late 1980s acquired and later sold assets of the failing Savings and Loan Companies at a cost of $125 billion ($200 billion in today’s money). This agency should:

·       Acquire securities (without rewarding shareholders and managers) of failing financial companies

·       Identify and separate non-performing and performing loans within the securities

·       Acquire and resell houses which were purchased by non-qualified buyers, insuring that some of these houses (especially near jobs) remain affordable to workers and others

·       Change the unmanageable terms of loans which were made to qualified buyers, so that they can continue to service them and keep their homes.

·       Sell performing loans to financial companies, as market conditions improve their value

·       Have Congressional oversight 

 

I am not sure that we must rush to pass this $700 billion legislation immediately.  President Bush is pushing our congress to hurry without making changes as he has previously, with his tax cut and Iraq War legislation.  Major changes must be made to restore credit as cheaply as possible, without rewarding those who created this mess, and adopting regulations and other measures to prevent future bubbles and crashes.  Note that our economy worked fairly well during the 25 years following World War II without the our many leveraged securities containing loans with unknown risk.  What would we lose if we banned these various securities and derivatives?

 

Ameliorating the Decline of Housing Prices

Housing prices are too high.  They must still decline perhaps 25% to reach historic levels compared to our incomes.  Delaying this decline will result in continued problems, similar to what Japan has been experiencing.  But as housing prices decline, many owners (who have purchased with little down payment, or who have refinanced to reduce their equity) will find that their house is worth less than their mortgage. 

 

When such owners decide to sell these homes or walk away from them, a government agency (perhaps through providing capital to local government or non-profit agencies) should purchase them and resell or rent them as permanently affordable housing.  This should not reward lending agencies which made loans leaving the house owner with insufficient equity.  Nor should it reward home owners who entered into such loans.  It should prevent the presence of vacant foreclosed houses, which destroy both the houses and their neighborhoods.  It should make homes available for sale to or rent by moderate and lower income persons.

 

We Must Prevent Future Bubbles

Unregulated activities by individuals, organizations or markets, inevitably lead to abuses.  That is why we have contract law and other regulations.  We must create and implement appropriate regulations specific to various activities, individuals organizations or markets.  For more detail, see Stopping Fraud and Restricting Speculation below.  For more.

 

Our Most Important Task Is Creating Needed Jobs

 

We want people to be able to earn instead of borrow.  We must create jobs, consisting of producing goods and services that we need.  These include:

·       Maintaining and improving our physical and social infrastructure. 

·       Conserving energy and other resources, which we presently waste. 

·       Creating alternative energies, which uses sustainable resources and doesn’t produce pollution.  It should not produce greenhouse gases which produce global warming pollution. 

·       Creating and implementing new technologies relevant to our health, education, housing and other needs. 

·       Preserving and improving our social safety net and improving our human resources.  Universal access to quality health care.  Universal access to quality education.  For more.

·       Create concentrated housing, especially affordable housing near jobs.  To reduce the damage to our environment.  To reduce the cost of providing utilities.  To reduce the amount of commuting, fuel consumption, congestion and polluting.  To increase the time that people have to spend with their families, civic activities and other interests.

 

Their workers must be able to earn in proportion to the value of what they produce.  We must increase the wages of workers (in existing  and new productive jobs) enough that they earn in proportion to what they produce.  We need to

·       Realistically increase our definition of poverty  For more.  For more.  For more.  For more.

·       Increase our minimum wage and earned income tax credits

·       Stimulate unionization, including passage of the Employee Free Choice Act and strengthening and enforcing laws which prevent employers from punishing workers who attempt to form unions

·       Increase the wages of our teachers, social workers and caretakers, to encourage people to become qualified, take and keep such jobs.

 

The government can obtain the capital for creating these jobs and other reforms by

·       Restoring fair tax rates to high income earners and our wealthy

·       Eliminating subsidies for special interests that don’t benefit our common welfare

·       Eliminating unbeneficial expenditures, including military industrial expenditures that don’t contribute to our national security

·       Increasing taxes to provide everyone access to quality health and education, while saving individuals and companies money now paid to private insurance companies and pharmaceuticals.

·       Improving and enforcing our laws against tax payer and other fraud.

 

For more.  Notice how quickly our government can find money to restore credit, especially if it helps our wealthy and powerful.  But how difficult it is to find much less money to provide the types of needed jobs described above.

 

Stopping Fraud

 

We need to enact and impose sufficient penalties on people who commit fraud.  Including real estate, stock and other sales people.  Bank employees who approve loan applications.  Appraisers.  Rating agencies with interests that tempt them to rate stocks and financial companies too favorably.  Rating agencies must be strictly at arms length from the stocks and companies that they rate.

 

We need to mandate transparency for financial transactions.  We should forbid the securitization of any loans which disguise their risks.  Leave it to investors to choose the mix of less or more risky securities that they purchase.  This includes derivatives.

 

Restricting Speculation

 

The housing bubble resulted in part because people borrowed a high percentage of the purchase price with the assumption that the value of the house would increase.  People bought houses speculating that increased values would yield them a profit.  People also refinanced their homes to obtain money for consumption or speculation.  When housing values declined, they no longer had equity, nor the motivation to keep their house, leading to additional declines in housing values and the collapse of home construction.  Margin (larger down payments and restrictive refinancing limits) requirements would have inhibited the creation and later collapse of the bubble.  For more.

 

We need to reduce highly leveraged speculation, by imposing margin requirements.  Home buyers should pay perhaps 20% of the purchase price with saved money.  Stock buyers might be required to borrow no more than 50%.  Similar limits might be placed upon other purchasers of financial instruments, by individuals or financial companies.  The more volatile the price of the items being purchased, the higher the margin requirements should be.  Interest paid to borrow money for speculation should not be tax deductible.

 

Producing and Ameliorating Employment Shifts

 

Our financial sector has increased from 10% to 20% of our economy.  We need to greatly reduce the number of people who are creating and monitoring loans and otherwise assisting speculative activities.  This means that many people will have to change jobs.  To assist these people, we should:

·       increase the duration and size of our unemployment payments.  And reemployment counseling.

·       Provide life-long access to health care, child care and education, independent from employment.

·       Increase training and wages for the jobs described above. 

 

Here’s the Beef

A potential $1 trillion program is being created to bail out distressed financial companies.

Seventy nine million Americans have problems paying medical bills or medical debts.

Arizona, Colorado and Montana voters will decide about changes to their health care systems.

Hillary Clinton and Cecile Richards: Bush Administration proposes to block health care for women.

Why no bailout for our Peace Corps and other social programs defunded by President Bush?

Major anti-immigrant figure is exposed as racist.  Aren’t most of them?

Silly Secretary of State Condoleezza Rice berates Russia.  Didn’t our invasion of Iraq isolate us?

 

Our Liberal Spirit

 

Making Things Simple

 

I enjoy attempting to understand complex phenomena well enough to describe them briefly so that people can understand them.

 

Our Values and Priorities

A prime example is the description of  our Liberal Values in four brief statements, the third of which has several clarifying sub-statements.  Some theorists have presented extensive analyses of which is the more important underlying value.  Equality or freedom.  Individual or shared common freedom.  These analyses can clarify our understanding of these values.  But such analyses complicate trying to convey these values for others to understand.  And they aren’t necessary for conveying the major features of our values.

 

I have similarly expressed our Liberal Priorities (see at the right side of the first page of our newsletters) in eight phrases, some of which could be expressed in separate phrases.  These are priorities which result from identifying the challenges to our values which occur in our present situation.  During our nation’s founding, freeing ourselves from the crown would have been a priority and some of our present priorities wouldn’t apply.  Similarly during the period of our civil war, during Teddy Roosevelt’s presidency or other historical times.

 

ICA’s Approach to Human (and Community) Development

The ICA was very intentional in creating and expressing its approach.  So it has been relatively easy to summarize it.  Crucial is that the bottom line is changing the culture of the individual, group or community from ‘I can’t.’ to ‘We can.’  This is done by enabling people to create their own plan, consisting of expressing their vision, identifying obstacles, creating strategies and specifying, organizing and implementing tactics (what is to be done, by who, when, how and with which resources).  These tactics are initially small projects in which people learn to cooperate, lead, obtain technical knowledge, raise capital, etc.  Importantly, the project teams learn from both successful and failed projects.

 

The danger is that we (the enabling consultants) will (perhaps to impress our supporters) begin to take responsibility for the success of the projects.  The local participants will immediately back off from taking responsibility and quit learning.  We become colonialists who reduce rather than increase their self sufficiency.  The bottom line is not the success of each small project.  It is changing the culture from ‘I can’t.’ to ‘We can.’  One these main features of our approach are clarified and understood, then we can continue to provide simple explanations at the next level of detail.

 

Our Financial System’s Problems and Solutions

Our national financial system is very complex.  As is it’s problems and likely solutions.  I only understand it’s broad outlines.  We have changed from an ‘earn and invest’ to a ‘borrow and consume (and speculate)’ financial system.  We need to change back.  We need to Reclaim our American Dream in which our physical and social infrastructure and financial reward system enable us to enjoy the fruits of our labor and enable future generations to produce even more fruitfully. 

 

Notice the distinction between investing to effectively and efficiently produce or distribute products and services and speculating in gold, art, real estate, derivatives, lotteries, etc. to reap benefits that I haven’t earned, often at the expense of people who have earned them.  Notice also that we need both individual investment in enterprises and collective investment in infrastructure to enable individual investment to pay off.  We need to reward investment.  We need to restrict speculation, especially when it leads to infectious greed and bubbles, which produce the wrong things and then collapse.

 

The major obstacle is our addiction to consuming and speculating and borrowing to do so.  And denial that we have become so addicted to such a destructive system.  The major strategies must be to understand the need for and make and encourage both collective and individual investment.  And to regulate (restrict and punish) speculation and borrowing for speculation.  We need to regulate individual, organizational and market behaviors. 

 

Different activities, types of organizations and markets require different regulation.  Cab driving and farming tend toward over-competition.  Utilities, some manufacturing and some retail trade tend toward under-competition.  Some activities require more regulation to produce transparency and prevent fraud than do others.  Some activities (home buying, stock buying, securities buying, etc.) require more margin requirements than others to prevent excessively leveraged speculation.  Various fraudulent activities must be prohibited, policed and punished.  Individuals and organizations must be forced to stop or mitigate their externalities (imposing costs on our environment, communities, consumers, workers and owners).

 

Even after trying to simply describe our financial system, its problems and solutions, it still seems complicated.  And it quickly gets more complicated as we attempt more detailed descriptions.  I believe the solutions expressed above are correct, but the devil is in the details of specifying and applying them to the various markets, organizations and individuals.

 

Procedures for Making Things Simple

So how does one simply describe complex social situations.  I first brainstorm the major features and organize my brainstorm into a small number of statements.  I then do research (books, other commentaries – printed and electronic (blogs), looking for things to add to the brainstorm.  I continually look for ways to keep it simple, removing statements that address more trivial issues, combining statements that address similar features. 

 

The result is often a tree.  There is the major feature, 3-5 sub-features, 2-5 sub-sub features, etc.  Teaching begins with the trunk.  Then the major branches.  Then smaller branches.  Thanks to Google, we can now use links to guide people to more detailed commentaries about the twigs and leaves.

 

I would appreciate your responses to this commentary.  What approach (strategies and tactics) do you use to understand and convey your understandings to others?  Maybe together, we can develop a manual for understanding and simply conveying aspects of social systems.  Dave Thomas

 

Recommended Books – See our list of books for liberals

 

Jack Huberman, 2007, The GOP-Hater’s Handbook, 378 Reasons Never Again to Vote for the Party of Reagan, Nixon and Bush Again

 

After reading this book about the chicanery, lies, fraud, corruption, predatory behavior, and criminality of jillions of non-compassionate Conservatives during the past 100 years, you may feel like an elitist.  You may realize the extent to which your values are violated by the people that Jack Huberman describes.  You may have contempt for them. 

 

But don’t fail to ask yourself, when have you and our Liberal colleagues been tempted and even succumbed to the temptation to act similarly?  Instead of feeling superior, we might feel the humiliation of being humans, who don’t easily and always resist temptation.  Ask yourself how we can create situations which provide us fewer temptations?  How we can improve both ourselves’ and others’ ability to resist temptation?

 

 

 

 

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