Friday, April 29, 2016

Civics 101 Revisited

It has been over 50 years since I took a night class in civics. It was highly recommended for immigrants prior to naturalization. I have forgotten much over the years, but not the basics.

With the elections coming up this November, it might be useful to review the basics and avoid confusion. This election year is very different than all its prior years. It looks like the electorate has to choose between two very flawed candidates, both despised by the majority of Americans, one more so than the other.

Our Form of Government

Here is a trick question asked naturalization officers: What is our form of government. The right answers? The U.S. is not a democracy. The U.S. is a federal republic.

At that time, many aspiring American citizens did not understand the significance. They just wanted to give the right answer so that they might show to be worthy of becoming naturalized Americans.

The constitution identified three rights granted to us, not by the constitution, but by our Creator: life, liberty, and the pursuit of happiness

I found that it is this recognition that made this country exceptional.

I have learned since that behind these simple answers are profound implications:

·      Presidents are not elected directly. It is the Electoral College that elects the president. Archaic rules determine how many votes each state is allotted. It is possible that electors choose someone who did not receive the plurality of the national votes.

·      We do not allocate senators based on population. Each state gets two spots, regardless of their population size. People were given the right to elect their senators only about 150 years ago. Before that, senators were picked by the state’s legislature.

·      We do not elect judges. It is the executive branch that nominates them and the senate approves. The parties of the chief executive selects judges according to their political persuasion.  To a certain extent, the judiciary reflects the philosophy of the party that has nominated it.

·      The House of Representatives is the only branch of Congress elected democratically. Although there is a minimum threshold, the seats are allocated based on population. California being the largest state gets 53, and Alaska, Delaware, Montana, North Dakota, South Dakota, Vermont, and Wyoming being the smallest gets 1 each. There are 435 voting seats and 6 non-voting seats.

Reasoning Behind Framework

The Founding Fathers, when framing the constitution, feared the tyranny of the majority and wanted to prevent geographic enmities and conflict. They also feared bullying by the more populous states.

It is important to note that, way back, folks did not have access to information with which to make informed decisions. Also, many people at that time were illiterate.  This fear morphed over the years into voting laws that later were found to be discriminatory and unconstitutional.

The Founders also put in place stringent rules for amending the constitution. Two thirds of the Senate and of the House of Representatives, must pass a resolution. And two thirds of the states can call for a national convention. The executive has no official role.

Advocates for Change

Some would argue that we have come a long way since then.  Others believe that we should change the ground rules to reflect modern times. Many resist change to the founding principles. They believe that in their wisdom, the Founding Fathers constructed a perfect system.

Some point to the parliamentary system used in Western Europe as being more democratic. But is it really? People do not vote for their heads of state. The President  is by and large elected by parliament, with variations such as in France. Monarchs get their post through heredity. People do not elect their Heads of Government. The Prime Minister is approved by Parliament after being nominated by the head of state.

My Two Cents

Given the 2016 experience, there are changes that can be made to make the process more democratic by enacting changes within the reach of each political party:

1.    Make the delegate selection in our primary subject to popular vote.

2.    Eliminate caucuses and machinations that make the process obtuse and incoherent.

3.    Make sure that delegates vote for the person who received the most votes.

4.    Eliminate the super delegates. They are unelected.

5.  Experience has shown that money does not really buy election. Permit anyone to spend whatever money they want as long as they advocate policy, and not promote a particular candidate.

OK. What about your nickel?




Saturday, April 23, 2016

My New Novel

I am proud to announce that Amazon.com will release in 10 days my second novel, An Unfounded Regret, in paperback and Kindle formats. My first novel, Giacomo’s Luck Runs Out, was published last year.

In Giacomo's Luck Runs Out I explored the poorly-made personality of a successful emigrant, in particular his inability to achieve emotional closeness with members of the opposite gender. 

In An Unfounded Regret I explore the positive side of the human condition during challenging and life changing events, and the contrasting benefits of living righteously. 

An Unfounded Regret chronicles the odyssey of two brothers during WWII. It explores the atrocities of war and their impact on the lives of innocent bystanders. A younger cousin traces his cousins’ friends looking for redemption and closure.

The novel offers a glimpse of the history and beauty of the Ionian Islands, the Peloponnesus, and the lake region of Northern Italy.  I have included as an appendix 15 memorable Greek and Sicilian recipes.

I use the pen name of Antonio G. Sacchetta to separate my foray into novel writing from my long career in management and international consultancy. The name Sacchetta is the Sicilian version of my last name.



Monday, April 4, 2016

The New Minimum Wage In California

California has enacted a bill raising the minimum wage from $ 10.50 to $ 15 per hour. The $ 15 minimum, however, will not be reached until 2022: in 2017 it would go up by 50 cents, and then one dollar each year until the $ 15 target is reached.  NY State has announced plans of raising the minimum wage to $ 15 by 2018 in the metropolitan area and at a slower timing in upstate.

Politicians, some workers, and labor unions celebrate this bill and publicize it as a big win.  Surely it should attract votes from marginal wage earners.  

In annual terms, this means: $ 21,840 in 2017, $ 22, 880 in 2018, $ 24,960 in 2019, $ 27,040 in 2020, $ 29,120 in 2021, and $ 31,200 in 2022. So over a 6-year period, the annual wage would increase by 43%.

Opponents of the increase in the minimum wage claim that many jobs will be lost. This might be true in the short term, but in the long term, experience has shown that the economy will absorb the increase and move on. However, with a high youth unemployment rate, in the short term, there might be a hiccup.

As an 18 year-old earning $ 1 per hour minimum when I entered the workforce, I was satisfied. I lived with my parents and the cost of living was much lower. Gas was 25 cents a gallon, a cup of coffee was 5 cents, a hot dog 10 cents, and so on.  With one hour’s work I could have lunch and drive 14 miles.

Anticipated Benefits

I was blown away to read that some 57% of the workforce earns less than $ 30,000 per year.  I would have guessed half of that.

Raising the minimum wage will be a boost for some, but it will not have a big impact on the poor – which constitute 7% of the population. 

Experience has taught us that some individuals might re-enter the workforce once the annual minimum wage exceeds welfare payments.


Living Wage

Some developed countries have moved from the minimum wage concept to the living wage concept. Australia has probably the most forward-looking philosophy, followed by some European countries.

After you deduct payroll taxes, net pay shrinks. No way can one say that it is a living wage. No way can these folks afford to live in the communities in which they work with minimum wage pay. Commuting will eat up another slice. 

For a minor living at home, the minimum wage might be OK. 

The original idea of a minimum wage was intended to establish a starting point for those entering the workforce, not an landing point. I do not think that it was meant to provide a living wage.

Things have changed … time to adjust to the 21st century.

One of today’s newspaper headlines in the San Francisco Bay Area laments the skyrocketing cost of rental housing. A one-bedroom apartment rents from $ 2500 to $ 5500 depending on location.

Questions

·      Why is it that we hesitate to do what is kind and just?  Surely the increase does not portent a calamitous impact on our economy!

·      Should it not a raising tide lifting all boats?  Or just yachts? The increase by all economic measures is not excessive.



Friday, March 18, 2016

The Primaries are winding down ...

The primaries are winding down. It looks most likely that Hilary Clinton will face Donald Trump in November. The summer party conventions will provide a glorious but fleeting occasion to celebrate the party platform and entertain the public with an archaic spectacle.  In autumn, the fireworks will re-start.

So here we have two old timers, Clinton who will be 69 by November and Trump who will be 70, seasoned but flawed veterans. Some 2/3 of Americans do not trust Hilary and are weary of her baggage of scandals, and just about a similar number do not approve of Donald’s bombast, insults, bravado, and ill-fated deals. 

Our choice? The lesser of two evils? I am afraid so.

The fringe on both sides of the spectrum put up a valiant campaign, but in the end, the majority of Americans have chosen centrists. Bernie ran a principled campaign and attracted younger and alienated voters. Cruz fought valiantly on behalf of the conservative cause.

Americans seem to have settled for incremental change on the democratic side over radical changes advocated by progressives. Republicans, on the other end, rejected the establishment and its “plumber” fixing approach to change.

A quick look at the finalists.

Hilary started her political career as a staunch Republican campaigning for Goldwater and Lindsey. Then, in 1968 she changed to the Democrat party as a strong supporter of McGregor. She was against the Vietnam War.

Donald has been all over the place. At different times he has been a Democrat, Independent, Undeclared, and Republican. He has admitted to give money to Democrats and Republicans. I would guess he is an equal opportunity politician.

They both seem to have a checkered past: one in the political arena and the other in business and commerce. One is perceived as a secretive, careful schemer while the other is often portrayed as a talented opportunist and manipulator.

Some think that Hilary faces her biggest challenge with the FBI investigation regarding her email debacle and perceived interaction between her public role and her husband’s private foundation. If she is indicted, her bid will surely be doomed. Many will see a vast conservative conspiracy behind it, for sure.

Others think that Donald is not the right person to represent the Republican Party, and attempts are being made to broker the convention and choose someone else. If this happens, the party will surely be fractured for decades.

Issues Bothering Americans

The average American is under a lot of stress. A recent research study by MarketPlace classified 61% of adults as being under financial stress. The study goes on to point out that 59% of Americans cannot come up with a $ 1,000 to cover an emergency. The gap between the working class wages and the executives’ pay is seen as the culprit. Income inequality is real and must be addressed.

Obamacare needs to be fine-tuned. 29 million Americans continue to be without health insurance, and many have seen their premiums and deductibles balloon.  The notion of scrapping and starting from scratch is not reasonable. Fixing it and improving it are more reasonable options.

The loss of American jobs still hounds many Americans in the manufacturing industry in particular. Many blame the so-called free trade agreements that are neither fair nor smart. We must protect current jobs and bring back some of the manufacturing jobs we have lost during the past 25 years with dumb policies.

Taxation is another major issue. The country will need to increase taxes on the top 1% in order to fund social programs and balance the budget. Taxes on corporations need to be lowered to encourage corporations to bring back the 2 plus trillion dollars they have parked overseas. Lower taxes will make our products more competitive in the global market. The whole system needs review and change. Too many loopholes that benefit the rich and Wall Street!

Equal pay for equal work is an issue that has been swept under the rug for generations. Pressure will mount to level the pay field.  Pay equity is an overdue change. The gap is unfair and cannot be justified!

The way we treat our veterans needs modernization. Too many anecdotes make people shiver at the beaurocratic malaise that dogs the VA. We need to make radical changes in the way we administer veteran benefits. Too many layers of management and poor process management make a mockery of its mission. Incompetent managers need to be dismissed as quickly as possible after a lean but fair due process.

Fair trade agreements must be renegotiated or fine-tuned to make sure that Americans don’t come out on the short end of the stick. Past deals have been neither fair nor smart. The ultimate price for the ineptitude of our negotiators is paid by working class folk. 

Our justice system needs overhauling. Our prisons are full with people guilty of having committed victimless crimes. Minorities comprise a large percentage of the prison population, leading many to suspect an unequal application of our laws.

One Final Note

The plumbing approach to change is not what we need. Plumbers are best at fixing leaks. The whole building needs upgrade. We need transformational change that involves both parties. We need politicians to do what is best for the country, not what is best for their party, their state, their community or themselves.

Americans on both sides of the aisle need to put ideologies aside and work for the common good. Ideologies promise utopia, but we all know that there is no one best way to solve problems.  The better way is what works. It is time to regain the idealism and forward-looking fervor unleashed by President Kennedy.