So Much for The Great “Recovery”

A recent news article caught my attention, largely because it confirmed a number of trends that I’ve mentioned over the past few years, that an increasing percentage of U.S. workers experience lagging wages, eroding benefits, and demands to do more for the same or even less pay.

A 2018 General Social Survey (GSS) reported that: (1) a third of U.S. workers found work has become significantly more demanding; (2) 20% of workers reported that they had too much work to do everything well; and (3) 75% had to work extra hours every month, much of it without compensation. All of these were a significant increase from 2006. A Federal Reserve Bank of St. Louis study reported that, over the last 20 years, corporate profits have far outpaced employee compensation.

As I’ve noted before, public universities and corporations are employing greater and greater numbers of part-time employees without benefits and fewer full-time staff, and more and more companies are outsourcing menial jobs to contractors who employ large numbers of low-paid part-timers.

The result of all this, as has been reported from multiple sources, is that the incomes of more than 90% of Americans have been stagnant or decreasing over the last 20 years, despite all the hype. They’re working, when they can, more hours for less, or multiple jobs to make ends meet. Fewer and few young workers, even college graduates and beginning professionals, can afford to buy a house, and may not be able to for years because of massive student loan debt.

There was only one part of the article which was, in my view, erroneous, and that was where it said “public companies have made shareholders their top priority.” That’s not exactly accurate, and it understates the extent of the damage caused by rampant and unchecked capitalism. Actual returns to shareholders, i.e., dividends, are extremely low by historical standards. What the present group of robber-barons and high-level corporate executives have done is to use cheap money and the even lower interest rates to inflate the prices of stock, through stock buybacks and other devices, to incredible multiples of earnings in order to turn their stock options and stock payments into capital gains. That penalizes small investors without the capital to use such tools and is, in effect, a disguised Ponzi scheme preying on those comparatively smaller investors, as well as on mutual funds, pension funds, and individual retirement accounts.

When the next recession hits, those CEOs will already have cashed out many of their holdings at a lower tax rate than paid on earned income, while the majority or smaller investors will find their investments drastically reduced in value, both in terms of nominal cash value and in terms of real purchasing power, given the last twenty years of “hidden” inflation, hidden because the government’s “standard” measures of inflation don’t accurately measure many of the real costs of living.

For example, the latest CPI indicates an inflation rate of 1.8% from July 2018 to July 2019, which includes a 2.0% decrease in the price of energy. Now, I don’t know about the rest of you, but the winter here was warmer than last year and the average summer temperatures so far have averaged 3 degrees below last summer… but my energy costs are up. So are our health and property insurance costs, our communications costs, and our food costs, all by more than two percent. Add to that a roughly 40% increase in property taxes, which is an amusing side note, because most of that occurred because our house was reassessed and its value increased by 32%. So while we’re living in the same house, and the tax rate only increased 2.2%, the actual increase in taxes amounted to 40%. This sort of thing happens to homeowners everywhere, and we’re far more fortunate than most, because our overall property tax levels are much lower than the national averages, but there’s no way that our basic cost of living increased only 1.8% over this past year, and for people living in urban areas, the annual cost of living has to be increasing by far more than 1.8%.

So… go ahead and tell me how great the recovery has been for most Americans.

Trump’s a Liar and a Crook? So?

For some time, I’ve wondered how a man who’s defrauded his investors, lied every time he’s opened his mouth, and most likely obstructed justice isn’t called to task by a greater percentage of the American people and why so few seem to care about Trump’s actions along those lines.

The other day I got an answer. I was talking to my cobbler, a man likely older than I am who’s been resoling and repairing my boots for more than a decade. He asked me what I thought of Trump, and I, fairly certain that he was a conservative Republican, said that I worried about Trump’s “solutions” and his ethics.

The cobbler’s response was simple. “Aren’t all politicians crooks?”

Now, that’s not true. I worked as a staffer in Congress long enough to know that a comparative small percentage are crooks, and most of those aren’t crooks in the sense of overtly breaking the law, but they’re good at taking advantage of its weaknesses and loopholes, and in the process of doing so able to gain considerable financial advantage.

But that’s not the point. I’ve heard about politicians being liars and crooks for years. A century ago, Mark Twain was saying the same thing. The point is that a significant percentage of Americans believe that politicians are crooked, and they’ve heard it for years.

That may well be why charges of being crooked or corrupt don’t stick to Trump. I suspect there’s a subconscious feeling on the part of many voters that, since so many politicians are crooked, and that they all lie, why single out Trump. This feeling may have also contributed to Hillary Clinton’s defeat because, while most crooked politicians are male, women aren’t supposed to be crooks, and by calling Clinton “Crooked Hillary” Trump was playing to the subconscious bias that women shouldn’t be President, especially women who are crooks.

I also suspect that, unless the Democrats can come up with hard and solid evidence that Trump committed illegal acts, as opposed to the almost entirely circumstantial evidence presently known, any actual vote of impeachment in the Senate will fail, and that the ethics issues won’t be a major factor in the next election.

One Big Fix?

Two mass shootings over the weekend, and more than 250 since the beginning of the year… and people are demanding a solution. Then there are racism and misogyny, poverty, and inadequate education, not to mention the problems of health care, immigration, and climate change.

And all of these problems have one thing in common – people are looking for a simple, single, and quick solution, if you will, a form of a big fix.

There isn’t one. Not to any of these problems.

Mass killings are created by a confluence of factors in each case, and while anger, almost always male anger, is a key factor, others, depending on the killer, are also critical, but not all of these factors are common to every mass killer, and that means that making significant progress means addressing more than one factor. Yes, reducing the number of firearms and who can carry what would make a huge difference, but with over 300 million in circulation and the current wording of the Constitution, to remove all firearms from private hands would require a Constitutional amendment and the approval of 38 states. That’s unlikely any time soon, and that means pursuing a number of other initiatives, from background checks to limiting the kinds of weapons allowable, possibly requiring gun owner licenses or gun registration. It means more coordination between mental health professionals and law enforcement. And that’s just the beginning.

The same problem exists with health care. For all the fuss of about Medicare for all and the cost of insurance, co-pays, pre-existing conditions, and the like, the basic problem is that healthcare in the United States costs too much. It costs too much for a variety of reasons, one being that the economics are structured so that U.S. sales of pharmaceuticals and medical devices bear all the costs of development and marketing, and that the profit motive is totally out of control. Other factors include an FDA that is slow and politicized and reluctant to approve competing generics, a law that prohibits the government from negotiating drug prices, a legal climate that rewards litigation, and a public that, for the most part, doesn’t do enough to keep itself healthy. Differing state requirements for licensing and insurance don’t help either. And, just passing Medicare for all won’t address any of these.

Merely building a wall across the southern border of the U.S. won’t even begin to address the myriad of smaller problems involved in the massive immigration problem. It won’t even stop the flow of immigrants.

The problems of racial injustice weren’t created just by slavery, but by a plethora of smaller injustices, ranging from a lack of education or systemically inferior education, economic discrimination, various forms of “redlining,” voter suppression, terrorist violence by the Ku Klux Klan and other groups, judicial support of “separate but equal” provisions, “Stop and Frisk” and other unequal policing systems, just to name a few, and each of these denials of rights and truly equal opportunity needs to be addressed separately, simply because trying to address them all at once doesn’t work.

And U.S. educators have been trying to come up with a single, one-size fits all educational solution for decades, ignoring the facts that no one methodology meets the needs of differing communities and student bodies or that schools within the same system can differ incredibly. Education administrators have also become so obsessed with measuring achievement and accountability that their measurements often hamper more than they help because teachers have less time to teach and students less time to learn.

Climate change presents the same problems. A carbon tax would definitely help, but such taxes have to be levied by all major carbon-emitting companies, just for starters.

The “one big fix” is just another useless aspect of a media culture that has forgotten and doesn’t care that all solid accomplishments rest on painstaking methodical steps toward the end. Sweeping generalizations just don’t cut it, but that’s all I hear any more. People and their politicians need to stop looking for the big fix, the miracle cure, and start addressing, step-by-step, all the smaller components of the big problems.

Observations on Military Flying

It’s been almost fifty years since I stopped flying helicopters for the U.S. Navy, although I do maintain an interest in military aircraft. My first military trainer [in primary] was a T-34, not the turboprop variety later developed, but a pure piston-engine aircraft derived from the Beechcraft Bonanza, with a top speed of around 190 mph. The second was a T-28, with speeds and capabilities roughly equivalent to early 1940s Navy fighter planes, and was also the plane with which I made my first carrier landings in early 1967.

Now, since it’s been nearly fifty years since I last flew a military aircraft, I got to thinking. Fifty years before I first flew was in 1916, when all military aircraft were essentially low-powered, cloth-winged biplanes. Less than twenty-five years later, military aircraft were travelling three times as fast. And that progress continued. From WWII to the Vietnam War, fighter plane speeds increased by a factor of four.

And exactly what’s happened since then? Most top line fighter planes today have top speeds slightly less than the fastest F-4 of the 1970s, yet all of the current top-line fighters would take the F-4 to the cleaners, so to speak, because it turned out that speed was seldom ever used. Part of that lack of use was the fuel cost of speed. Full afterburner usage can drain a fighter’s tank in a matter of minutes, and enough fuel to keep the plane in the air longer would make it too heavy to take off [a slight over-simplification, but essentially true]. Maneuverability and weapons systems – and low radar profiles – have become the key to air superiority.

Unhappily all that technology doesn’t come cheap. In 2018 dollars, the flyaway cost of an F-4 would be roughly $19 million. An F-35 comes in at $80-$90 million, four times as much, and with the U.S. projected to buy 2,443 aircraft, the current cost estimate is an estimated US$323 billion. But then, in 2018 dollars, the roughly 4,000 F-4s procured by U.S. military forces [my estimate out of the roughly 5,200 built] cost around $80 billion in 2018 dollars. While we’re paying four times as much for a little more than half as many aircraft, an original F-4 can’t stand against fourth and fifth generation fighters – and if we built “new” F-4s with modern avionics and weapons, I have the feeling that they wouldn’t be all that much cheaper… and they’d likely cost more to operate and wouldn’t have as much range… and we’d likely lose more pilots.

What it all seems to mean is that air combat isn’t ever going to be any “faster” than it was 50 years ago, but it’s definitely more complex and more expensive and likely to keep getting more so… yet technology makes most other things cheaper. And that suggests that it’s getting more and more expensive to destroy things than to build them. But I don’t see much progress in realizing just how much more it’s costing to build more and more sophisticated systems of destruction as we engage in what might be called the Red Queen’s arms race.

Quit Bitching

For the last fifteen years, I’ve heard nothing but complaints from retailers, large and small, about how the internet is taking away their business. And, as an author, I’ve suffered as well from the internet’s “success” in destroying literally thousands of bookstores and retail outlets carrying books.

But part of the problem isn’t the internet; it’s the retailers. What was the response of Borders and Barnes and Noble to Amazon? Both of them cut their inventories and back stock, and tried to diversify. Borders always did have a poor ordering and inventory system, and carrying less stock made matters worse quickly. Then, when margins got tight, B&N started listening to the cost-cutting accountants. That’s almost always the kiss of death, and in B&N’s case, it almost was, because as they cut inventory and stock they sold fewer books, and the other merchandise didn’t make up the difference. B&N just got bought by a private fund that recently acquired the British bookstore chain of Waterstones, which, interestingly enough, has been making a comeback by, surprise of surprises, opening more and smaller bookstores closer to people. And I know a few bookstores who are still around because they address customer needs.

A retailer is in business to sell things. But if they aren’t where the customers are, or they don’t stock what the customer wants or needs, they can’t sell it. If you reduce the number of items you sell, you’re going to sell fewer goods, and your revenues will go down.

The other day I went to both of the only two big box stores in town. Both carry patio furniture, but this year neither carries the furniture covers I used to buy there. Neither does the single hardware store nor the furniture store. I still needed the furniture covers. So I had to buy them online.

It’s not just furniture covers. It’s everything from buffered aspirin [not a single grocery store or drug store in town carries it any more] to boots and shoes, from books to office supplies and printers. Even though Cedar City is now four times the size it was 20 years ago, we actually have to buy more and more goods that we used to purchase in town from the internet. There are small stores here in town – and elsewhere – that are surviving and sometimes even thriving, and it appears that they’re successful because they make the extra effort.

So… retailers…maybe you ought to focus more on what people need and where and when they need it instead of just cost margins.