Wednesday, February 24, 2010

Lies, Damn Lies and Government Statistics

Too often, we think the data is straightforward math and simply draws on the underlying data sources. The reality is that it is anything but. The following example will hopefully illustrate the point.

Recently in Washington a rather large number of economists from academia and government met to resolve an issue with data gathering. It has become more serious in the US and has distorted how we value the American economy itself. Central to this issue is how imports into the US are accounted.

For example, when a part for $100 is imported from China and is used in an American automobile... something that happens much more often these days... the stats show that the finished car is American-made because it was assembled in the US. As a result, the US GDP is raised by that same $100 when in fact it should have been deflated by that figure instead. In the process, American workers who might in the past have made the part are no longer doing so and hence a job is lost.

The unemployment data finds the unemployed worker and accounts for him or her, but the car that is assembled does not, and when it is produced and sold as its value makes its way through the system, it appears productivity has risen, when in fact it has not. {False conclusion of data: Fewer workers needed to make a car}

As one of the economists attending that meeting said,

We don't have the data collection structure to capture what is happening in a real-time way, or what is being traded and how it is affecting workers. We have no idea how to measure the occupations being 'offshored' or what is being 'inshore.'
Or as the Assistant Commissioner for International Prices at the Bureau of Labor Statistics (that's a socialist sounding title if I've ever heard one) Mr William Alterman, said regarding the problem:
What we are measuring as productivity gains may in fact be nothing more than changes in trade instead.
This is not an insignificant problem. The US has become much more international in its trading scope. Back in 1975, imports into the US were only 5% of our total economic activity, but in recent years that has swelled to 12%, excluding imports of energy. Thus, many imports into the US are being valued as though they were manufactured here in the US, when indeed they were manufactured abroad and merely assembled here in the US.

In autos, computers, appliances and similar manufacturing industries this is a large and growing problem, but the same is happening in areas of service as well. For example, when an accounting firm out-sources some of its number-crunching to a group in India and then bills the client in the US, the work is done abroad but being recorded as having been done in the US, adding to US GDP when clearly that is not the case. The same scenario plays out in medicine when patient files are sent to India and billed back to the US in US dollars. GDP rises here in the US when it really should have been accounted for in India; productivity goes up; GDP goes up, when in reality neither has happened.

It is important to look at the big picture when analyzing data, especially when assumptions of years past have changed considerably. Just as we adjust for inflation, we need an adjustment for outsourcing our productivity.

Mitch Biggs spent 14 years flying F-15s for the USAF. Then he transitioned to a Fortune 200 company. As a Director, he left and is now semi-retired mentoring aspiring entrepreneurs.

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Please visit my Blog. There is a video that takes you inside the F-15 cockpit on a mission. Pretty Cool!

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Monday, February 22, 2010

Gmail Bans in Iran

Iran's telecommunications agency has announced the suspension of access to Gmail, the Google email service, in the country, according to the Wall Street Journal website. In a move ahead of Thursday's 31st anniversary of the creation of Iran's Islamic Republic, the national telecoms agency in Tehran said that it will ban Gmail and will instead facilitate its own national email service.

The decision, first reported by the Wall Street Journal, comes just a month after Google threatened to leave China amid concerns that its systems had been attacked by Chinese hackers.

The Iranian announcement is understood to be part of a wider crackdown on opposition protests ahead of today's anniversary, which is likely to bring significant protests from both dissenters and supporters of the Islamic revolution.

The development came amid reports of significant disruptions to internet services across the country in the last week, as well as delays in text messages being sent. It remained unclear as to what impact the announcement had actually had on the Gmail service in the country. YouTube, which is owned by Google, was one of the main ways in which video footage of the protests was beamed around the world.

The web giant said that the decline had happened even though its networks were working properly. Opposition websites have urged major demonstrations on the most important day of the nation's political calendar. Google says its e-mail traffic in Iran has dropped sharply, amid reports access is being restricted for the Islamic Revolution's anniversary. The web giant said that the decline had happened even though its networks were working properly. Opposition websites have urged major demonstrations on the most important day of the nation's political calendar. Iran's police chief said that some activists had been arrested as they prepared for protests. Google said users of its Gmail had experienced difficulties following a newspaper report about official restrictions.

A Google spokesman said: "We have heard from users in Iran that they are having trouble accessing Gmail. We can confirm a sharp drop in traffic and we have looked at our own networks and found that they are working properly.

"Whenever we encounter blocks in our services we try to resolve them as quickly as possibly because we strongly believe that people everywhere should have the ability to communicate freely online. Sadly, sometimes it is not within our control Tehran rally Official events will be held across Iran but the main gathering will be at Tehran's Azadi square, where President Ahmadinejad is expected to speak.

Anti-government websites have urged their supporters to attend the rally too, raising the possibility of a confrontation. Ahead of the commemorations, police chief Esmail Ahmad Moghaddam said the Revolutionary Guards and Basij Islamic militia were ready for any trouble. "We are fully prepared for holding a safe and glorious rally," he told Fars news agency, according to agency. "We are closely watching the activities of the sedition movement and several people who were preparing to disrupt the 11 February rallies were arrested," he said. The anniversary comes a day after the US extended Iranian sanctions, aimed at the Revolutionary Guards. The US Treasury will freeze the assets of a senior Guard commander, as well as four subsidiaries of a construction company he runs. The move follows the announcement by Iran of its Permanent suspension Whenever we encounter blocks in our services we try to resolve them as quickly as possible, this is quoted by a California-based company said in a statement. "Sadly, sometimes it is not within our control.

The Wall Street Journal reported that Iran's telecommunications agency had announced a permanent suspension of Google Inca's e-mail services. Washington - which on Wednesday extended sanctions against Tehran - said any efforts to keep information from Iranians would fail. US state department spokesman PJ Crowley said: "Virtual walls won't work in the 21st century any better than physical walls worked in the 20th century. The 31st anniversary of the revolution could see protests from opposition supporters who say last June's re-election of President Mahmoud Ahmadinejad was rigged. Opposition leaders Mir Hussein Mousavi and Mahdi Karroubi have called on their supporters to rally on Thursday. Anti-government websites have urged marchers to display green emblems or clothes - the colour adopted by the opposition movement after the disputed election. Fatal violence erupted after the poll, and sporadically since then. The micro-blogging site Twitter and other social networking sites were used extensively during the post-election protests.

Ejaz Alamone is an associated author with India next and provides more information about these issues. World News.

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Saturday, February 20, 2010

The Party of Know - A New Republican Mantra For 2010

The GOP has taken on the persona of being the party of no. The majority party, currently the Democratic Party, sets the agenda, chooses committee leaders and controls the schedule. Consequently, the party out of power is subjugated to primarily obstructing bills with which they disagree. Conservative candidates should retake the GOP and become the party of "know." Know what works and know why it works. Know what fails and understand why it fails. Then apply that knowledge reasonably and respectfully.

Abraham Lincoln, our first Republican president, provided the impetus to push the agenda of "know" when he posed the following questions: "What is conservatism? Is it not adherence to the old and tried against the new and untried?" The message of conservatism is to maximize personal responsibility and limit the role of government. Conservative Americans already have a political party; it simply needs direction and definition. Many of these concepts are described and explained in my book "7 Life Lessons You Should Know." Government programs should exist to catch you when you fall and praise when you win, not the other way around.

The U.S. economy does not need to be reinvented. It needs to be represented by new members of Congress who know how to enthusiastically reintroduce the concepts that raised this nation from an indentured servant status to a world superpower in just over one century. After the American Revolution, our form of government was called a great experiment by the rest of the world. Self-governance is no longer an experiment; it is now a conclusion, having been independently reproduced again and again. Americans are rejecting the hope of crisis management. We are eager for a renewal of freedom, prosperity and opportunity.

America deserves to be represented by knowledgeable business leaders, warriors, accountants and proven problem-solvers. These people must be judged on their ideas. Are they solution-based or power-based? We need solutions, not more problem-containment.

Not long ago the Republican Party was in the position of having control of Congress and the White House. They had a chance to improve health care and strengthen our economy and they blew it, spending their political capital expanding government services in an attempt to bribe future voters. Know that the wasted effort did not work then and it will not work now. Earn the respect and confidence of the American people and we will give you our votes. You will not have to bribe or beg for support.

Define the issue and solve the problem and watch as the professional politicians in both parties scramble to get out of the way. Know that they will be scrambling because the truth of their mishandling of government responsibilities will have been revealed.

Know that the dilemma is to draw a line below which no American will have to live and above which any citizen may compete and prosper. When that line is too low, the poorest among us suffer. If it is positioned too high it will discourage vigorous effort from too many.

I believe in our system of government. Unfortunately many of us have forgotten that the American voters are a vital part of that system. We are in essence the control panel and without direction, any system will eventually spin out of control. Our representative republic is the epitome of the acronym GIGO: Garbage In, Garbage Out. Take out the garbage and embrace the party of know.

Todd Lester's career has spanned across many years and numerous industries. He has been registered with the Securities and Exchange Commission and licensed to sell investments and insurance, worked as a retail manager, turned wrenches as an automotive mechanic, served cubicle time as an office manager and even owned his own business for many years restoring car interiors. And that is just since graduating college with a Finance degree. During much of this time, he was also a citizen soldier, serving twenty one years in the Army National Guards of both Louisiana and Texas as an Army bandsman. He has even performed as a clown with the Shrine Circus.

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Friday, February 19, 2010

Dumbocracy - Adventures With the Loony Left, The Rabid Right and Other American Idiots

Dumbocracy: Adventures with the Loony Left, the Rabid Right, and Other American Idiots
, Marty Beckerman, 2008, ISBN 9781934708064

The author spent four years visiting with political extremists on both sides of the spectrum. These are people who believe in nothing less than total victory for their side. Most Americans are moderates on the issues, but, for instance, pro-life and anti-war activists still see things as very black and white.

Beckerman discovered a lot of interesting things in his travels. Betty Friedan, founder of the National Organization for Women, compared American housewives to the millions who walked to their own death in the concentration camps. Those on the Right blame homosexuality for the destruction of American society, but just over half of Americans think of homosexuality as an acceptable life-style. Texas A&M University requires that all faculty members celebrate and promote homosexuality.

It would be a much better country if women did not vote. That is simply a fact.--Ann Coulter. The American Institute for Philanthropy has ranked MADD (Mothers Against Drunk Driving) as one of the most corrupt and least effective charities in the country. In 2006, the California Supreme Court allowed authorities to break into citizens' homes anytime--without a warrant--to check their blood alcohol levels. A legislator in Missouri compared biology teachers to terrorists, for teaching evolution. Environmental activists have demanded control over citizens' home thermostats, threatened to spy on those who do not recycle and suggested that governments should intelligently reduce human populations to one-sixth their present number.

In 2006, the Bush Administration joined with Iran to ban a gay-rights group from addressing the United Nations. In 2004, Canada officially banned criticism of homosexuality, which is now punishable by up to five years in prison. Also in 2006, the Wisconsin Supreme Court ruled that forcing drug suspects to consume laxatives, in order to find drugs in their digestive tracts, is not an unreasonable search. In the 1990's, a Republican member of Congress proposed mandating the death penalty for all drug dealers. When his son was convicted of growing thirty marijuana plants, he received community service, not a lethal injection. Neither side has a monopoly on hatred of free speech.

This is the sort of book that will be thrown across the room by True Believers on both sides (sometimes those are the best kind of books). For everyone else, it is an excellent, and eye opening, look at the state of politics in America. It is very much worth reading.

Paul Lappen is a freelance book reviewer whose website, http://www.deadtreesreview.com, has over 700 reviews on all subjects, with an emphasis on small press books.

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Wednesday, February 17, 2010

Progressivism Equals Socialism Or Worse - Communism Or Fascism? What's Up With That?

Bewildered by what is happening to the United States of America? Are these the last days of America as we know it? Consider that since the autumn of 2008 the federal government has taken over or taken control of 30% of all private enterprise profits in the U.S. You say, come on, that really did not occur or could not occur in the U.S. Well did you know the feds effectively took over the banking system, the insurance companies and two major car companies (GM and Chrysler)? The (so far) attempted take over of the entire health care system (which is 1/6th of our economy just by itself) would add another 18% private business profits takeover. Moreover, the Cap and Trade bill that passed the House of Representative in 2009 and is pending in the U.S. Senate, would add an additional 8%. That would get it up to 56% of private business wealth controlled by the feds. The student loan program is on deck at the Senate as the House already passed it. All of this was unimaginable just 18 months ago.

Before this historic takeover started, the federal government already controlled about 20% of the entire economy. This via various programs such as Medicare, Medicaid, Social Security, Food Stamps, Temporary Assistance for Needy Families (TANF), Federal Housing Assistance-loan payment subsidies and rental subsidies, Home Energy Assistance and the list goes on and on. One can easily say we are already at least a quasi-socialist country. Progressives want the so called "progress" of more and more of the federal government controlling our economy. Will the U.S. survive such an overhaul? At this point it seems unlikely, especially given the already crushing, unsustainable U.S. debt. The current Administration and Congress seem to be employing the Cloward and Piven strategy. David Horowitz aptly explains the strategy as: "The strategy of forcing political change through orchestrated crisis. The "Cloward and Piven" strategy seeks to hasten the fall of capitalism by overloading the bureaucracy with a flood of impossible demands, thus pushing society into crisis and economic collapse." They said this would allow "for major economic reform at the national level." In other words, collapse the system in order to rebuild it the way they want. Me thinks into a dictatorship because after all under the progressives philosophy, the elitist know what is best for us. We, the people, are just too stupid to know what is in our best interest.

Fascism is essentially a heavy-handed, strong central government that extensively regulates private businesses and corporations. One could argue we are nearly there now or there is not much time left to avert it. With the almost impossible yearly deficits and mounting U.S. debt, the Cloward and Piven strategy appears to be alive and well. The natural "progression" after the collapse would be toward communism (can you say power grab?) with the necessary redistribution of property and wealth so there is more economic equality for everyone. Economic egalitarianism without much regard for individual efforts or reward for individual hard work. Demise from within the U.S as often predicted. We can see if before our very eyes.

Please, please wake up America - it is still not too late!

Jim Holiway is an online entrepreneur who writes about online businesses and other issues. Check out the Articles Index from the menu at his Social Network website athttp://www.Workathomespacebook.Com for numerous articles on many great topics.

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Monday, February 15, 2010

Health Care Reform Looks to Create Tighter Age Bands - Do You Know What That Means?

The health reform debate in Washington has been confusing and contentious. There are many theories floating around about why that is, but it boils down to one central issue. There are no easy, everyone wins, answers in addressing the rising cost in health care. As a result, the American people have been fed a steady diet of concepts that are easy to understand, and half truths. Instead of debating the nuances of building a better health delivery and payment system, the choices are "government between you and your doctor", or "heartless, greedy insurance companies leaving people to die". Case in point, the concept of requiring all health plans to tighten the age bands on insurance premiums.

Insurance companies set premium rates based on risk. For instance, we all know how expensive auto insurance can be for a 16 year old boy. Put him into a brand new Ford Mustang, the premium climbs even higher. As that 16 year old gets older, holds a clean driving record, the price drops every year. Health insurance on the individual market often works the same way, only in reverse. Young, healthy adults have access to affordable health insurance, although they will see the cost go up as they get older.

Some States already have limits on how much premiums can increase, although most States do not. Even if there is never a significant claim against a health insurance policy, the premium could increase to five times the initial amount just based on increasing age. That really rubs a lot of policy holders the wrong way, and makes buying a policy for an individual in their 50's rather expensive. President Obama spoke to this point when talking about folks who are discouraged from starting a small business, or retiring early because of health care premiums.

How is it fair that an insurance company can push a premium up on a policy holder who has been faithfully paying for years at the very time of their life they may actually need to make a claim? The solution for this in health reform is to tighten the age bands. An insurance company can only charge it's oldest customers 3 times the amount it does for it's youngest customers. The House bill even had only 2 times the amount. Sounds reasonable, but there is a reason that this is not a major talking point in defending the health reform bill. The young and healthy will be paying more.

Is this the right thing to do? Tough to say, good arguments can be made for both sides. Why should we have our young adults paying more for health insurance that they most likely will not even need? They have enough financial pressures. Low paying, entry level positions, school loans, and maybe saving up to buy that first car or house. Access to health care is not the only factor in good health. A young person's limited budget may be better spent on fresh vegetables, fruit, or a gym membership. No question we all need health coverage for that "what if", but how much should we expect a young person to spend on insurance to cover that "what if", when it most likely will be a "never happened"? As it stands now, we have young people forgoing insurance. Could we actually exasperate this problem by driving the cost even higher?

Instead of having the debate though, many in Washington have decided to side step the discussion. Supporters of reform try to insinuate that the higher premium charged for those in their 50's is pure profit for insurance companies, and opponents of reform don't want to acknowledge the fact that many older Americans are simply getting priced out of coverage. Neither one of these approaches really acknowledges the whole truth.

The best way to view health reform is to look at the merits of the individual pieces. Just think of the progress that could have been made in the last year if lawmakers spent their time explaining how the different parts of the legislation actually worked. Instead of having a confused, uncertain electorate, Washington would have a clear idea of what the American people do, and do not support. Perhaps lawmakers already do know what Americans want, and it comes in a perfect silver bullet that does not exist. I suspect it will be back to the games.

Saturday, February 13, 2010

The Principles of Liberty - Principle 5

"All Things Were Created by God, Therefore upon Him All Mankind are Equally Dependent, and to Him They are Equally Responsible."

The Founders vigorously affirm throughout their writings that the foundation of all reality is the existence of the Creator who is the designer of all things in nature and the promulgator of all the laws that govern nature.

The Founders were in harmony with John Locke who said that a person who calls himself an 'atheist' is merely confessing that he has never dealt with the issue of the Creator's existence. Therefore Locke would say that an Atheist is out of touch with the most important and fundamental reality.

John Locke insists that everyone can know that there is a divine Creator. With Descartes each person can say "Cogito ergo sum'. With God, each person can say, "I AM!" Further more, each person knows that he is something. And something cannot be produced by nothing. Therefore what brought man and everything else into existence had to be something. In order for all of this organizing and arranging to be as such that it is, the Organizer would have to be all-knowing. The something would therefore have to be superior to everything which had resulted from this effort.

Locke taught that the Creator must be a cogitative being since man is cogitative. And that a non-cogitative being like a rock could never have produced a cogitative being like a man. Locke also taught that the Creator would reflect a sense of right and wrong, and a sense of indignation for violation of the law.

The American Founding Fathers agreed with Locke. They considered this truth as the most fundamental premise underlying ALL self-evident truth.

The Founding Fathers also relied on the writings of William Blackstone when it came to their foundation on God's revealed law. He stated that the will of God which is expressed in the orderly nature of the universe is called "the law of nature' and there are laws for human nature just as surely as they exist for the rest of the universe.

The Founders looked at the Creator as both intelligent and benevolent, and anxious and able to respond to people's petitions when they are deserving of needed blessings and engaged in a good cause.

Charles Bracelen Flood discovered in his research that during the Revolutionary War that there were at least sixty-seven desperate moments that George Washington acknowledged that he would have suffered disaster had not the hand of God intervened in behalf of the struggle for Independence. James Madison also acknowledged the hand of God during the Constitutional Convention.

We can now see that the Founders were quite sincere when they adopted the motto "In God we trust." And it is also now clear why they required all witnesses who testify to take an oath and swear before God that they will tell the truth.

In closing, a note from Tocqueville "A presiding judge remarked that he had not before been aware that there was a man living who did not believe in the existence of God; that this belief constituted the sanction (in law, that which gives binding force) of all testimony in a court of justice; and that he knew of no case in a Christian country where a witness had been permitted to testify without such belief."

In order to protect liberty, we must elect those who have a belief in God, specifically, that our rights are given by the Creator, therefore, our rights must be protected and not trampled on by man. We should not delegate to government rights that we do not have. We cannot force everyone to believe exactly as we do, and we should not empower the government to rob others on our behalf in anyway.

Charity Angel is an author,singer, political activist, small business owner, and an online business coach. Find more of her thoughts Here.

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