The Golden Years Really Are Golden

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A recent AP story caught my eye, since it bears upon an issue on which I have oft written — the coming pension tsunami, caused by the retirement of us Infamous Boomers.

It tells the news about the wealth gap between the Old and the Young. The gap is now the widest in American history. Despite occasional lurid stories about a grandmother eating cat food shortly before being wheeled off a cliff, the wealth gap favors . . . the old!

And the gap is enormous. Census data reveal that households headed by someone 65 or older have an average net worth 47 times greater than that of households headed by someone under 35. The median net worth of households headed by a person 65 or older is about $170,000, compared to a pathetic $3,662 of those headed by someone 34 or younger.

Moreover, the gap continues to widen. It has doubled over the past six years, and has increased fivefold during the past 25 years — even after adjustments are made for inflation. Astonishing, no?

There are a number of reasons for the declining relative fortunes of the young. One is that the Obama recession has totally creamed the young, especially young men. It is not for nothing that this has been called the “he-cession.” Besides that reason (though related to it), is the fact that young people are taking longer and accumulating more debt to get their degrees. And of course others are still paying mortgages on homes that have fallen disastrously in value.

The disparity is bleak, and in a way — considering all the granny-eating-cat-food propaganda — ironic. But the trend is decidedly the friend of the elderly: over the past quarter century, the wealth of households headed by the elderly rose by a whopping 42%, while the wealth of households headed by the young (under 35) declined by a dizzying 68%.

As if that weren’t bad enough, 37% of households headed by the young have a zero or even negative net worth! That is an increase of over 100% since 1984 (when the census first started keeping track of this happy stuff), and it is massive compared to the only 8% of elderly-headed households so cursed. And the median income of elderly-headed households has grown at a rate 400% greater than that for younger-headed households.

Net worth is here defined just as you would expect: by adding the value of homes, personal possessions, stacks, bonds, savings, and other property (such as cars, boats, and vacation properties), and subtracting credit card, auto, home, student loan, and other debts.

Now, how does the AARP — those redistributionist pirates who are always so intent on transferring assets from the young to the elderly — respond to the news that the 47 to 1 gap in net worth favoring the elderly is the highest in history? Of course, it greets it with greedy denial.

One Nancy Holland, a propagandist — pardon me, an executive vice-president — of the AARP puts it in the typical AARP spit-in-your-face-avariciously-aggressive fashion: “Millions of older Americans today continue to struggle to make ends meet. Many older Americans do own their homes, but plummeting housing values — along with dwindling savings, stagnant pensions, and prolonged periods of unemployment — have taken their toll.”

In short, screw the young people. As if their own homes and savings hadn’t been hard by this progressive liberal recession. As if they too hadn’t suffered unemployment. As if they had freaking pensions to rely on!

Our country is, alas, headed into the fiscal dustbin of history. Its aggregate national debt is approaching the dimensions of Greek tragedy, if not of Greece itself. But the AARP continues to wage a jihad against all entitlement program reforms. Future historians — if there are any who aren’t progressive liberals, hence wedded to the ideology of the redistributionist state — will record with incredulity the bizarre structure of a politico-economic system that in defiance of biological reality systematically starved the young to glut the old.

Maybe we need ads showing the grandkids eating cat food as they are pushed from a cliff.




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Who Let the Dog Out?

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Police are routinely judged by a different standard, a double standard under the law that allows them to violate the civil liberties protected by the constitution. The police do so with impunity. They can (and they do) get away with murder while the average, non-uniformed person is tossed into jail for forgetting to pay a traffic ticket.

A recent news story from WFMJ (Campbell, Ohio) and the Youngstown Vindicator illustrates how deeply embedded this double standard has become. An “off-duty” police dog was enjoying a walk with his partner when he spotted an 8-year-old boy playing hide-and-seek with his cousin. The dog attacked the running child, dragging him to the ground, shredding his sweatshirt, puncturing his T-shirt and leaving marks on the boy's arm.

What is the police response? They praise the dog's record as a crime-buster and drug-sniffer. No mention is made of sanctioning the police officer or taking the dog off the street. Any other dog would be put down for attacking a child without provocation; any other owner would be liable in civil court. But this dog was excused with the explanation that he could not distinguish between a fleeing suspect and a playing child. In short, the dog was just doing his job.

"They're [police dogs] trained that anything running could be a potential threat, and all he's doing is reacting and doing what he was trained to do," explained Sergeant John Rusnak from the Campbell Police Department. “He has caught three armed robbers. He has located numerous amounts of drugs. He has tracked down suspects. He’s been a vital, vital part of our police department.”

The libetarian commentary site The Agitator makes an interesting observation about the incident: “And if someone had come to the kid’s defense and shot the dog, as on- and off-duty cops routinely do, that person would be in custody right now. Of course, the problem isn’t the dog, it’s the handler. And when cops kill the family pet, the problem also usually isn’t with the dog.”

It is my understanding that no police dog attacks without a verbal command. If I am incorrect, then every police dog out there is a standing menace to every child it encounters. There is no mention of any sanctions or repercussions for the officer who let the dog in question get away. Apparently leash laws do not apply to everyone. As in Animal Farm, “All animals are equal, but some animals are more equal than others.” Orwell was speaking of swine. So am I.




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A Cure for What Doesn’t Ail You

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The Obama Regime is best known for its crony car and crony green energy capitalism, but there is scarcely any industry it hasn’t tried to corrupt for its own interests.

An unlikely source has now informed us of an especially egregious new variety — what can only be described as crony drug capitalism.

The LA Times — yes, savor that! — reports that another billionaire backer of Obama, Ronald O. Perelman, was able to get a no-bid contract from the government for some dubious vaccine produced by his New York-based company, Siga Technologies. The money involved is Solyndra scale: Perelman’s company will get $433 million in taxpayer cash.

The drug is supposedly a cure for smallpox, if you are unlucky enough — extremely unlucky — to contract it (see below).

Ponder these points:

  • Besides donating to Obama’s election campaign, Perelman gave $50,000 to finance Obama’s inaugural party.
  • Perelman’s company, Siga, put Obama’s close associate and major supporter, Andrew Stern, former head of the Service Employees International Union, on Siga’s board of directors.
  • Smallpox was eliminated as a live disease from the entire planet over 30 years ago. The only known specimens of the virus are said to exist in Russian and American government labs.
  • The use of smallpox by our enemies is amply deterred by our own possession of it, as well as by our nuclear weaponry.
  • Even supposing someone attacked us with smallpox, we already have a billion-dollar supply of effective vaccine on hand — enough for the whole country.
  • This existing vaccine costs $3 a dose.
  • Siga’s vaccine costs $255 a dose, i.e., 85 times more than the existing vaccine.
  • Siga’s vaccine lasts only 38 months, while the existing vaccine lasts for decades.
  • When the Department of Health and Human Services resisted the ludicrously overpriced vaccine, Obama appointee Dr. Nicole Laurie put a new person in charge of negotiations with the company.
  • After that change, Siga received a “sole source” contract, meaning that it was the only company asked to submit a bid.
  • Even though the contract was supposed to go to a small company, and one such outfit, called Chimerix, wanted a shot at the project, and Siga (since it is affiliated with a large company) didn’t meet the criterion, Chimerix was frozen out.
  • Siga’s vaccine has not received (and will not, for ethical reasons, involving needed tests on human subjects, ever receive) FDA approval.

So, because of Obama’s political connections, we are paying nearly half a billion dollars for nothing.

A feculent business, indeed.




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More Thoughts on Green Energy

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Look, I apologize — okay? — but this story just won’t stop. I know that I’ve written a fair amount on crony green capitalism, but more things keep propping up, and the mainstream media keep ignoring them. They have made green energy their shibboleth. So those of us in the alterative media just have to step up to the plate.

First, some recent material on the most notorious “green energy” scandal: the Solyndra case. Solyndra was loudly touted by the Obama Regime as a “jobs machine,” and its chief investor was a billionaire leftist Obama fundraiser. This “company” was given a half-billion bucks in taxpayer-backed loans, after which it went belly up. The Republicans in the House of Representatives have been trying to get all the information on the scandal, but they are naturally facing a White House stonewalling campaign. The Democrats in the Senate, led by Majority Leader Harry Reid, who has his own ties to the corrupt green energy program, are ignoring this issue.

The House served a subpoena on the White House for all its internal emails about the company. The White House is obviously frightened of those coming to light. An early release of emails showed that very high officials in the Regime knew Solyndra was in trouble even as the Regime was looking at plans to shovel it more taxpayer-backed loan guarantees; the subsidies were given, nonetheless. The emails caused the Regime considerable embarrassment, and it is clearly worried about more unfavorable publicity. So it is practicing what the Nixon Watergate cover-up hatchetman had called a “modified, limited hang out.” That is, it has released some highly redacted emails, but with crucial information omitted, and has refused to release all pertinent information.

More recently released emails show that the Department of Energy (DOE) put pressure on Solyndra to squelch an announcement that Solyndra planned worker layoffs and a plant closing until after the election.

That’s right. Solyndra’s CEO warned the DOE on Oct. 25, 2010 that because the wretched company was running out of cash, it planned to lay off employees on Oct. 28. He noted that reporters had apparently learned the company was in trouble. In an email of Oct. 30, advisers to Solyndra’s main investor note that the DOE has pressured the company to put off the announcement until a day after the Nov. 2 midterm elections. The email says, “DOE continues to be cooperative have indicated that they will fund the November draw on our loan (app. $40 million) but have not committed to December yet. . . . They did push very hard for us to hold our announcement of the consolidation to employees and vendors to Nov. 3rd — oddly they didn’t give a reason for the date.”

That last sentence indicates that the unnamed author of the email was either an idiot or a comedian.

These emails and others reveal a level of coordination between the company and the DOE that can only be called crony capitalist collusion.

Now let us mourn the demise of yet another “promising” green energy company — one I haven’t mentioned before — Beacon Power. I know what you’re thinking: why lament the passing of another startup company? Don’t 56% of all new companies fail in the first four years, Jason? What part of Schumpeterian economic theory don’t you understand, the “creative” part or the “destruction” part?

Now that’s a great return on your investment: pay less than a hundred grand, and pocket $400 million in return.

The reason you should mourn, dear friend, is that more of your tax dollars were spent on this boondoggle. Yes, Beacon Power got a tidy $43 million in taxpayer-backed loan guarantees from Obama’s DOE, and it has just filed for bankruptcy.

Then again, there is the chipper, choice news that another solar company, Colorado-based Abound Solar, received $400 million in (as always with this corrupt regime) taxpayer-backed DOE loan guarantees. Now, I know this will shock you, but one of the major investors in Abound Solar was a big financial backer of — Obama!

In a story that abounds in irony, though not in legitimate profits, one of the major investors in Abound Solar — a creature delightfully named Pat Stryker (as in, striking at our tax dollars) — “bundled” $87,500 for Honest Barry. Now that’s a great return on your investment: pay less than a hundred grand, and pocket $400 million in return.

And I must not omit the news about Robert Kennedy, Jr.’s, sly crony capitalist deal. This story has been unearthed by the keen eye of Peter Schweizer, who has an expose of the morass of crony capitalism our nation has become in his new book, Throw Them All Out.

Kennedy made his name as a big booster of green energy (except, of course, in his own backyard). His company, BrightSource, snagged a very tidy $1.4 billion bailout from Obama’s DOE. Apparently, though the details are still murky, this bailout — a DOE taxpayer-backed loan guarantee — was arranged by a key DOE employee who had only recently worked for Kennedy’s company.

The central player may have been Sanjay Wagle. He was one of the owners of BrightSource, and he raised money for Obama’s 2008 campaign. Upon election, Obama appointed him to the DOE as an adviser — on energy grants! Pretty convenient for the company, no?

At the time it requested the loan, BrightSource was a basket case, with $1.8 billion in debt, losses of $71.6 million, and a lousy $13.5 million in revenue.

The corruption these stories reveal is truly Nixonian. But there is a difference between Nixon’s and Obama’s corruption. The mainstream news media were interested in exposing Nixon’s (because they loathed him), but aren’t in the least interested in exposing Obama’s (because they love him).

For the record: this whole green energy loan guarantee program was approved by George Bush, and was dramatically increased by Obama with so-called stimulus money. Can we all not now agree just to kill the whole freaking stupid program?




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Playing the Race Card

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Whenever President Obama gets in trouble the leftists love to play the race card and accuse his enemies of hating him because he is black. Jimmy Carter, among others, is guilty of this, and other leftists regularly accuse Tea Party patriots of being racists. So let’s see whether this theory withstands logical scrutiny.

People say that racism is about “hate” and “bigotry.” These, however, are mere empty slogans. If you look at history, you can discern a central motive that generally explains racism. Here I will draw upon the theory of social biology, which seeks to explain human social structures, e.g. marriage, by reference to each organism’s drive to maximize the spread of its genetic material. A race is a collection of humans who evolved in roughly the same geographic area and are therefore related to one another more closely than to members of other races. Members of racial groups use racism to promote the survival of their DNA at the expense of other genetic blends.

If this theory of racism is correct, then the solution to racism is for humans to stop thinking like animals, who only care about the survival of their DNA, if that, and to start thinking like human beings, who care about individual happiness and fulfilling one’s potential as a reasoning mind. If people were to do this, then interracial marriage would become far more common, and 500 years from now everyone would be a member of the same global race, which would end racism for good.

Now let us assume, for the sake of argument, that the ideas in a person’s mind come from his or her thoughts and decisions and not from DNA. Then, if we concede that a “culture” consists not only of art, music, and food, but also (and most importantly) of ideas and concepts and the style of thinking that they embody, it will become evident that culture has no direct relationship to DNA. If that is so, then a race and a culture can be associated only by accident, and there is no causal relationship such that, for instance, black DNA causes black culture.

A racial culture is chosen by the members of a race, and it is not an expression of their DNA, although the culture that parents teach to their children can have a strong impact on the culture of the next generation. These observations underscore Thomas Sowell’s brilliant argument that members of oppressed racial minority groups might best be served by reforming their culture on the model of, say, Jewish culture, which has shown itself capable of overcoming oppression and achieving affluence.

So at last we come to the great fraud of racial leftism: the argument that if you oppose an idea that is thought to be implicit in, for instance, black culture, you are therefore a racist. From here all the modern-liberals need to do is argue that leftism and Marxism are intrinsically tied to black culture, and they can make an argument, quite logical within the context of their faulty premises, that everyone who opposes the Obama agenda is an anti-black racist.  This is the trick that Obama, whom some regard as the Ace of Hearts, has up his sleeve.  You can expect him to lay it on thick by accusing the Tea Party and Republicans of being white supremacists during the 2012 election campaign.

But as Ayn Rand said, “Check your premises.” Yes, there may be groups of bigoted whites in the deep South who vote Republican and also like white DNA more than black DNA (although even to suggest this is to engage in discriminatory stereotyping). Nobody knows how Michele Bachmann or Rick Perry really feels about blacks, although I am confident that Ron Paul is not a racist. But what in the world do white racists in the South have to do with economic theory? If you do not accept any causal link between racial DNA and cultural ideas, and if you reject the absurd and insulting notion that socialism favors dark-skinned people (see my essay on racism in Liberty, August 2010), then this racist argument is nonsense. Pull out the premises that form the foundation of the argument, and Obama’s house of cards collapses.




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Big, Fat Hypocrite

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Prominent at various Occupy Wall Street demonstrations, lending his overweighty support to the decorticated descamisados raucously protesting and polluting the parks, is famous Marxist millionaire Michael Moore. He’s as hard to miss as a bellowing beached whale. He is there to rail against the wicked rich, the “1%” who are such a bane to mankind.

But confronted by an interviewer who had the temerity to point out the obvious hypocrisy of Moore’s bashing of the upper 1% while being in that very group himself, Moore tried gamely to deny — while keeping a straight face — that he was part of the 1% being vilified. The irrepressibly cheeky Andrew Breitbart has posted pictures of Moore’s huge, obscenely lavish new lakefront mansion. Moore’s gorgeous place, on the shores of Torch Lake, Michigan, is officially assessed at roughly a million bucks, but the joint is probably worth much more. Homes on the lake range from $400,000 to $3 million, and his is one of the newer, bigger properties. Michigan property tax assessments are set at roughly half the market value of the property, so figure it to be worth $2 million.

Yes, an upper-1% kind of joint.

Ah, but this delicious dish of hypocrisy has more layers. Not only is the “manse” worth multi-millions, but it is in a township with no black residents. This leftist toad lives in a segregated community, whose inhabitants are 98% white.

Add another layer to the poser cake: this is just his summer home! Mr. Man of the Peeps has other massive properties as well.

Quite a dish to stomach, indeed.




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Is the Arab Spring a Winter for Women?

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President Obama backed the rebels in Egypt, abandoning our longstanding (and admittedly loathsome) quasi-ally Hosni Mubarak. The Egyptians in the street were, after all, demanding their freedom . . . or so it was presented. When Mubarak fell, Obama of course congratulated himself warmly.

However, some people were nervous at this spectacle. Especially nervous were people who recalled Obama’s spiritual guru, Jimmy Carter, who decided to abandon support for the Shah of Iran to help usher in the new “forces of democracy” there. The result was not democracy, but an even more authoritarian regime — indeed, a totalitarian one, driven by an Islamist ideology and implacably hostile to the United States.

Recent events in Egypt have ominously suggested that we may be seeing a similar devolution there, with the Islamist Muslim Brotherhood looking to take control.

A recent story is both a disgusting and worrisome harbinger. It tells the story of a Cairo businessman trying to decide whether or not to “circumcise” (i.e., mutilate the genitals of) his daughter, who is — 12 years old! This procedure is a happy custom endorsed by many conservative Egyptians, and Mubarak’s regime struggled to suppress it. But with the winds of the Arab Spring, it is resurgent again.

Female genital mutilation (given the euphemistic acronym “FGM”) involves removing most or even all of the clitoris, and even the labia minora, followed by stitching up the vaginal opening.

All this, to make sure that young women remain chaste and “pure.” It is already incredibly common in Egypt, and is now likely to become even more so.

The Mubarak regime had banned the practice after a young girl died from it, and Suzanne Mubarak (the dictator’s wife) had spoken out continuously against FGM and had gotten religious leaders to oppose it. But the Muslim Brotherhood opposes the Mubarak ban, and it now appears that prior progress will be rapidly reversed.

We can only wonder what other treats are in store for Miss Liberty as the New Egypt evolves.




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From “Reinvest” to “Occupy”

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The “Occupy” movement attacks only the superficial side of the problem. It’s like blaming the gardener, instead of the weather, when the flowers die.

Times are hard and our first impulse is to indict what is right in front of us, namely, banks, corporations, the people who have made money by merely observing and accurately interpreting the idiocy around them — people who have taken advantage of the economic distortions to make money.

Banks, corporations, and wealthy people happily obeyed the Community Reinvestment Act, passed by Congress, and used the cheap money created by the Fed to make obscene profits in the five years or so before 2007. Since that time, they have made even more profits by borrowing short-term money at almost zero interest rates, forced into the economy by the Fed, and investing in long-term Treasuries at 3%, the so-called carry trade. If there is a trough, there will be pigs.

The government is the ultimate source of the misallocations that have and probably will continue to impoverish “the 99%.” “Occupy” and its supporters who “believe,” in their government-school-induced darkness, that the government can “save” them from evil “capitalists” seem to be screwing their heads into a socket that produces very little light.




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Easy Money

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Not too long ago I received an email solicitation for money from an old acquaintance. A breast cancer survivor, Patty (her real alias) proposed to ski across the middle of the Greenland ice cap with three other female cancer survivors to "raise breast cancer awareness."

Though it was easy to see how the proposition might work — give me money and the cure for cancer will be one step closer — I couldn’t connect the "awareness" dots.

How does "awareness" actually help the struggle against cancer? Those who have it are already aware, and those who don’t have it know someone who’s had it, and are, therefore, also aware. That covers pretty much everyone. I know, the reasoning goes something like this: the more people are aware that cancer exists, the more they are likely to donate money for research, so cancer will be cured sooner. But this is tenuous and specious sophistry at best. If cancer research is the objective, why not just solicit funds for that, and skip the arctic junket? What Patty really wanted was one more great adventure in her life, and she didn’t want to pay for it.

Actually, I was envious. Adventure junkies (of whom I am one) are driven to ever more outrageous accomplishments. It gives meaning to our lives. It’s what we live for. Transcending our own abilities doesn’t always put food on the table, but it builds “human capital” (in the words of Thomas Sowell) — capital that recharges our energy and creativity, capital that can be invested in future endeavors. But these adventures cost money. Last time I checked, climbing Mount Everest cost over $70,000. Put that on your resume.

I’d faced this before. Contemplating crossing sub-arctic Canada from Great Slave Lake to Hudson Bay along the Thelon River in kayaks, my partner (a journalist) suggested we raise funds by "doing it for charity" — any charity that deigned to associate itself with us. I asked her how the accounting would work. She responded that the funds would first be used to pay for our expedition; then whatever money was left over would go to the good cause. We’d solicit media coverage, write up our trip account, get it published, and donate the receipts (if any) to our charity.

Yeah, right.

Our incentives didn’t align with the still-unchosen charity’s. Our primary objective was crossing Canada above the 60th parallel: raising money and awareness for a generic "good cause" was just a way to finance our trip. To me, it seemed dishonest to flip the two and pretend that our charity was our primary objective while our trip was a self-imposed hair shirt to show dedication to the cause. So, in a spirit of greater transparency, I suggested soliciting commercial sponsorship from companies whose products we could use and who would actually benefit from supporting our venture through ads and testimonials. After all, I couldn’t — with a straight face — declare that I was kayaking the Thelon for Jerry’s Kids when I was actually doing it for Miller’s Adult: me.

Kelty, Hormel, and L’Oreal responded. They sent a tent, two cases of tinned meat, and assorted cosmetics. (Our pitch to L’Oreal had been that outdoorsy women also use cosmetics. They bought it.) In the big scheme of expedition funding, this was chump — albeit honest — change: we were very grateful and never failed to mention them.

Now don’t get me wrong. I am not against charity (with the caveat that charity, either with someone else’s money or at the expense of one’s own needs, is no virtue [while stinginess with one’s own property is no vice]). And I’m a firm believer in the libertarian value of uncoerced, private funding. Additionally, my heart always skips a beat whenever I think of Terry Fox, the cancer amputee who attempted to run across Canada with a 1970’s-era prosthetic leg, in unimaginable pain, come rain or shine, and in a constantly deteriorating condition, to inspire people to donate funds for cancer research. Fox’s only motivation was to cure cancer: he literally ran himself into the grave in a heroic act of total dedication. It was about the only thing left he could do.

I turned Patty down, telling her I needed my money for my own inspiring adventures, wished her luck, and congratulated her on her gambit.

She responded that I was small-minded, and that it was people like me who were what’s wrong with modern society.

Patty’s expedition succeeded in crossing a notable portion of Greenland’s ice cap but met with defeat for the usual reasons: weather, personal conflicts, equipment failure, less-than-perfect conditions, etc. — all understandable. Still, I can’t help but think that perhaps a bit of the wrong motivation had something to do with the failure.




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A Prayer for the Council of Economic Advisors

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Have you ever said a prayer for the President’s Council of Economic Advisors (CEA)?

Neither have I.

It seems an odd thing to do, doesn’t it? To nonbelievers, it would, of course, be a pointless act, and while it would not necessarily be pointless to believers, surely even they would see it as presumptuous.

In any case, people do say prayers for their leaders, particularly in times of strife; and since we may be entering such a time, I have selected a prayer for the CEA just in case I ever feel the urge to use it.

It is a simple prayer, taken from the King James Bible, Luke 23:34: “Father, forgive them; for they know not what they do.”

 




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