Friday, June 04, 2004

What is Christian Libertarianism (Geocities rescue)

Christian Libertarianism is a world-view based on Judeo-Christian values which emphasizes freedom and social justice. The purpose of morality is the benefit of humans and discipleship consists of justice for the oppressed rather than a stand for personal righteousness. It can also be called the Christian Left. Since the advent of Rush Limbaugh, Focus on the Family and the Christian Coalition, radio listeners and broadcast experts have been speculating on the possibility of a radio talk show capturing the other side. This book is the user guide to a talk radio talk show that is an attempt to do just that.

These essays are a product of years of study and thought about the problems of this world and some possible solutions. They are a presentation of my personal philosophy and the nexus of four key beliefs systems that I feel are stronger in combination. They are Christianity, Cooperativism, Libertarianism and Internationalism.

The essays on Christianity reflect my own faith journey. They come from a Christian perspective because that is what I know. This does not mean I exclude fellow liberals from other religious or moral traditions, including and especially Judaism, which is the source for all of the teachings of Jesus. I relate my Christianity as a social ideology based in the teachings of Christ that all can join in, whether Christian or not. I am going to attempt to claim the ground that the Christian Right seeks to claim for itself. I refuse to let them have a monopoly on God.

For me, the core difference between the religious right and the religious left is how God is defined. The religious right, including many in my own Catholic faith, hold fast to the idea of an angry God who demands perfection in every detail. In doing so, they justify themselves as the righteous voices of an angry God. Those who oppose their view of God are outside the bounds of faith and damned to eternal Hell. Religious conservatives look at man as basically evil and fallen, doomed to hell without the church, which stands between man and an angry God. To reach heaven in this church, the anger of God must be satisfied. This has led to a self-important church focused too much on the things of this world, such as monetary success and political power.

The Right’s view of God as angry is a reflection of their own anger at those they disapprove of, but this anger has little to do with God. However, as long as we allow the religious right to define God in terms of their anger, that anger dominates public policy. It also leaves many that are otherwise saved by a gentler theology in the wilderness of unbelief. In essence, the harshness of the conservatives is counter-productive because it keeps people away from God. Many do not see a God of anger as a God of Love, which leaves them outside the comfort of God's mercy which the church provides in the here and now. The horrific vision of an angry God leads many to go so far as to deny the very existence of God. Let us redefine God as a lover of mankind, who rescues us from the self-imposed exile of suffering. Seeing God in this way allows a renewal in the relationship between God and people, justifying our call to constitute a polity of service to others and of human freedom.

I address some interesting questions that may help non-Christians understand Christianity from a different perspective. The Jesus I present is a humanist, rather than an absolutist, and His sacrifice is put in terms that the average seeker can understand, rather than as a grand mystery. My Christianity is infused with a healthy dose of humanism, which leaves room for liberty that the group dynamics of dogma do not allow. It is also infused with the Cooperativism of the early church, which was abandoned when it became the state church of the Roman Empire. Such an infusion defeats the atheism of Marx and Lenin and allows Christianity to reclaim the high ground in the battle for workers rights.

The Cooperativism presented here is a free market alternative to state Socialism. It strives for the same type of worker equality that Socialism strives for, but attempts to surmount the allocation problem inherent in state control. The goal of Cooperativism is the equality of workers at the corporate level, rather than the political level. It is also described as Inter-Independence, working in an interdependent manner so that each worker is financially and environmentally independent. My Cooperativism is also internationalist, so as to avoid nationalism and protectionism, which so often taint the struggle for workers’ rights. Previously, this topic was called corporate socialism. I have since learned that this term is in use by Ralph Nader to describe corporate welfare. This is not that. I use Cooperativism to describe the free association of workers for their common independence in a way similar to the way Silas Allen, my great-grandfather, used the term when he helped start the cooperative movement.

My Libertarianism is richer than that which is practiced by those on the right. It is more than a reaction to governmental power; it is an affirmation of individual rights in all organizational settings, from the church to the office to the condominium association. If right wing Libertarianism were to ever succeed, big government would surely be replaced as an oppressor by big business. I will not replace a tyranny where I at least have a vote with one to which I must bear allegiance or starve. I will not give up on liberty in the workplace and on the rights of workers as individuals to economic justice. My Libertarianism is also tempered with Internationalism. I stand for the rights of people everywhere, not just those within our borders. The isolationism which Libertarians propose reminds me far too much of the isolation of the 1930s, which allowed tyranny to hatch on a global scale, leading to world war. Finally, my Libertarianism is tempered by my Christianity. While I believe in freedom, I do not believe in moral license or the freedom to ignore the suffering of others. Freedom and liberty serve the cause of human dignity; they are not an end to themselves.

My Internationalism is in the service of people, not national or economic interests. Current international bodies are collections of sovereigns. I believe Internationalism is more than that. I stand for the exporting of the values of liberty, tolerance and human dignity to all nations who would relate with us, and for the election of a sovereign legislature by all people who share these views. Such an Internationalism guarantees the rights of workers and stamps out slavery with overwhelming force where ever it again rears its ugly head, whether in sweatshops or in forced prostitution. Such an international government is a limited government, whose main focus is to protect the liberties of its citizens from tyrannical local government (even when democratically elected) and exploitive employers and lenders.

This should be an interesting journey. I hope you enjoy it.

Thursday, June 03, 2004

Christian Libertarian Summary (Geocities Rescue)

Having described Christian Libertarianism by its main themes: Christianity, Cooperativism, Libertarianism and Internationalism, we will now summarize positions on the various issues of the day.

Christian Humanism

Proof of God
We first examine the proofs of the existence of God that I find most convincing. The surest proof of God is on a personal level, the experience of grace. While this cannot be offered as evidence to another, if enough individuals share such a common experience it is best not to ignore it. Of course, all proofs come down to a personal choice as to whether the universe can exist on its own or is created, moment-to-moment, by a God who sustains existence itself.

The Nature of Soul and Spirit
If one depends on science alone, it is reasonable to conclude that man has no soul. Such a conclusion takes some of the joy out of life, at least for me. Luckily, even without religion, a soul is inferred using reason, as thinking is a spiritual act. The soul is both spiritual and physical, the Id, the Will and the Intellect (which bridges the two). Human freedom only exists because there is evil in the world, where the true presence of God is hidden from us.

How Christians Understand God
God is the perfect being. One can think about the Trinity as the Father being Perfection, the Son being the Knowledge of that Perfection made manifest, and the Spirit being the Love of the Knowledge and the Perfection made manifest. The Trinity is necessary to understand salvation in Christ. Jesus knew himself as Messiah first through his mother Mary and the virgin birth and then through the scriptures.

The Death of Jesus and its Meaning for Us
Jesus’ knowledge of himself points to the nature of salvation as a way for God to feel the abandonment that the sinner feels through his passion on the Cross, when he called out in despair to God. Jesus drank the vinegar on the cross before he died, which he promised he would only do in his Father’s kingdom. If the kingdom had to wait for the resurrection then Jesus lied, which would make the Gospel a farce.

Liberation Morality
Understanding salvation leads to a new structure for morality. Morality, like the Sabbath, is for man, not for God. What is moral is dictated by what is best for man, in whatever circumstances man faces. Absolutes exist only in the mind of God and are not knowable by man in this life.

Rebuilding the Body of Christ
To better serve the faithful, the Church must change the focus of its moral teaching. Salvation from sin is only the first step to holiness. After you are born again, you take up the Lord’s work of service. When the Church reorients toward service and moves away from Moralism it does this. End Priestly celibacy, which has its roots in disdain for the sexual act within marriage. For the sake of Christian unity, abandon clerical wealth and power to an elected lay deaconate, which in turn elects its own leaders. Clergy can then stick to teaching and ministry. Elect Patriarchs for the English and Spanish worlds, with the English patriarch uniting the Catholic and Anglican churches.

Social Politics

The Limits of State Power
God given free will replaces the divine right of kings. The General Will is only knowable in unanimity, which makes the protection of minorities and individual liberty essential. Attempts to regulate the behavior of the minority by majority vote lead to tyranny and should be resisted.

Education, Welfare and Religion
To effectively educate children, first make sure the parents are literate. All adults have a basic human right to literacy and to full financial support while they attain it. Tie public assistance to the pursuit of education, with social services available only through the schools. A system of Catholic adult education and vocational high schools can best provide these services. Vouchers are not the answer to school reform. The secret to reform is to organize the public school system the way that private schools are organized, with autonomous Principals reporting to school boards for each institution. Most functions are to be decentralized. Once this reform is enacted, private religious charter schools are funded through an increase in income taxes. School prayer in charter schools will be less of an issue, as will teaching of the “Intelligent Design” theory. This paradigm is more about religion than science (and is taught there with private funding). Teaching it in science class brings the debate on the interpretation of the scriptures to the realm of public decision, where the religious right will not really want it to be given the Sumeric origins of the creation myth found in Genesis.

Drugs, Mental Health and Crime
The War on Drugs is waged as much for cultural reasons as for public health. Like alcohol prohibition, it has not worked. A better alternative is mandatory treatment for addicts, as well as for the mentally ill. Mandatory treatment is preferable to using the prison system as the largest provider of mental health care services. Most crime has its roots in addiction, mental illness or illiteracy and is better treated in those arenas. Replace the insanity defense with a plea of guilty by reason of insanity. Non-acceptance of this plea by the prosecution must be reviewable. The state has proven itself incapable of providing mental health services. The Catholic Health Care system is a natural choice to step into the void, bidding as the prime contractor for private prison contracts for non-violent drug offenders and for the criminally insane.

Racial Justice
The federal government does not owe reparations for African American slavery, as the Civil War provided reparation at the federal level. Slave states, and the District of Columbia, do owe reparations, however. The federal government also owes reparations for systemic discrimination, for programs that hurt the African American community and for promises that were not kept. The heirs to the progressive movement must begin the process of apology. Accomplish affirmative action in education by admitting those sure to succeed, rejecting those who are likely to fail and selecting those in the middle randomly. Enforcement of fair employment and fair housing laws must be vigorous.

Gay Rights
Constitutionally, sexuality is not an issue, as regulating sexual mores is a state function. The only federal function is to guarantee equal protection of the law to all citizens. The recent Defense of Marriage Act is exactly opposite to the intent of the founders in this area and is a dangerous precedent. Gays have a right to not only tolerance, but also acceptance. A careful reading of the scriptures shows that homosexuality was not the sin of Sodom, the desire to rape the Angel of the Lord was. AIDS has produced such prodigies of care in the gay community that no one can argue with a straight face (excuse the pun) that gay relationships aren’t a sign of God’s love. The objection that heterosexuals find gay sexuality disgusting only proves that one sexual preference excludes attraction to the other, nothing more. A morality based on the fact that God loves man does not put gays outside the moral order, especially as there is strong evidence that God created them that way. Religious people cannot expect gays to trust their morality if they do not trust gays when they claim to have been born that way. Including gays in the moral order, and sanctifying their unions gives people of faith an opening to warn against promiscuity, an opening that does not exist if all homosexual relations are outside the moral order. In the Catholic tradition, marriages are made by the couple, not the Priest (who is only a witness). Apply this concept equally.

Birth Control and Stem Cell Research
Embryology is rather clear that an individual cannot be an individual until gastrulation, when the genes of the father are activated in the development of the child. This is a sign that ensoulment occurs at gastrulation, not conception. To believe otherwise burdens medical science with treating each embryo, inside and outside the womb, which is clearly unnatural as most embryos die because they are defective. This also means that neither stem cell research nor birth control are the same as abortion, so the Catholic and Evangelical churches are wrong on this subject.

Roe v. Wade and Reproductive Freedom
Regardless of whether a fetus has a soul (and it does) it does not have citizenship under the Fourteenth Amendment, although Congress could grant it. Unless Congress does so, Roe v. Wade is constitutionally correct. Overturning Roe does not impact abortion to a great extent, since most places where abortion has any availability have legalized abortion by state law. Even anti-choice politicians understand that they cannot go too far in front of the public on abortion. Laws banning abortion were as unsuccessful in actually stopping it as the prohibition of alcohol or the War on Drugs. Such laws turn this country more and more into a police state. On the other hand, women must be careful about trumpeting the right to abortion, since some use the procedure for sex selection, usually to select a male.

Abortion and Christian Libertarianism
The abortion debate produces three factions, the avid pro-choicers, the avid pro-lifers and the mushy middle, which like neither abortion nor state action prohibiting it and where the Christian Libertarians and the likely plurality of Americans are found. The solution comes from this middle ground, though this comes much to the chagrin of fundraisers on the extremes and in the political parties. One option balances the interests of the mother against the child, although this is dicey as it opens the door for state coercion. The other option is to remove the incentives to abortion. Young women and girls must be assisted in both having a career and a baby without undue hardship. The Mommy Track must be integrated into a solid path of professional advancement. Change the tax system to make children truly affordable at a middle class level of comfort, regardless of the wage of the parent. Take the responsibility for providing for college out of parental hands and give it to potential employers. Consider shifting most of the tax system from an individual personal income tax to a Value Added/Business Income Tax to make the tax credit for additional children look like extra pay. Instead of supporting coercive action, the Church should take the lead in advocating economic justice as the way to end abortion.

The Nation’s Capital

District of Columbia Finance
Budgetary autonomy is a good first step in improving District finances. Ending the District’s responsibility to fund any part of Medicaid facilitates budget autonomy, as the need for a separate abortion rider on local Medicaid funds is no longer necessary. The Federal Government is in arrears to the District over the transfer of St. Elizabeth’s mental hospital, which was a regional, rather than a District facility and which continues to house referrals who want to “see the President.” The prohibition against a commuter tax is also federal and must either be repealed or replaced by the creation of regional authorities on education, corrections, mental health and Temporary Aid to Needy Families funded by a regional income tax, as well as a regional transportation authority funded by gas and property taxes. It is past time to audit the extent to which the District has been under-funded by the federal government, both in terms of service provided to the National Capital Service Area and of providing pension services to District employees who had paid into the federal system. Prior employee contributions were never transferred to the District when these costs were forced upon District taxpayers – who then accumulated more than $2 billion in assets over 20 years (which Clinton promptly spent to balance the budget when they were transferred as part of a deal to end the District’s obligation). History has shown that for much of its existence, the District of Columbia has been the first taxed and the last served by the federal government. Federal compensation to the District for its services should be automatic, since Congress almost always appropriates pork for the folks back home before fulfilling its obligations to D.C.

Limiting Congressional Meddling in District Affairs
Congressional interference in the District is traced to a tall tale on the “insult” of the Continental Congress in Philadelphia by rioting Revolutionary War veterans seeking payment. In fact, the insult was that the veterans ignored Congress, who was not good for the money anyway. The veterans wanted Pennsylvania to pay them. The First Amendment now provides everyone the right and even the duty to insult Congress whenever it messes up, which is frequently, so the justification for federal control is moot. The Fifth Amendment limits plenary congressional authority in some areas, but has not yet been extended to the rights of D.C. residents to vote on all changes to the closest thing they have to a state constitution, a clear violation of their equal protection rights. If Congress is the D.C. state legislature, it is exceeding its power in changing the charter without referendum, which it does almost annually and often not in the best interests of the District.

The District Government
The District Government is in dire need of reform, both in its organization and in its proposed constitution, of which it has two. Both of these problems must be fixed if its bid for statehood is to be taken seriously. Adopting state rather than local structures for its government gives the perception that DC is ready for statehood.

Getting a Vote on Voting Rights and Statehood
To get a vote on statehood, retrocession or voting rights, all three options must be debated and voted upon by District voters, the Maryland General Assembly and in Congress. One of these choices likely wins and any change is an improvement over the current situation.

Fiscal Politics

The Budget Process and Control of Regulation
To limit pork barrel spending, a three part budget process is needed featuring a Joint Budget Resolution, authorizing legislation and appropriations legislation. The Joint Resolution automatically appropriates funds if no appropriation act is passed by the start of the fiscal year. Authorizing legislation includes the examination and amendment of all regulation passed by the agency since the last authorization, putting Congress in the hot seat on these issues rather than “unelected bureaucrats” who are in fact presidential appointees.

Making Agencies Efficient
An effective surrogate for profit in the federal sector is to examine the percentage of spending on mission versus the amount spent on administration. Systematically tracking these costs at the sub-appropriation level allows managers to turn back money on administration without necessarily being penalized by budget cuts in future years. If anything, agencies that spend more on their mission are given more money (provided there is no funny business with the numbers).

Health Care for Seniors
Recent cuts in Medicaid and Medicare were far too severe, as is proven by the number of firms that opted out of treating Seniors in an HMO setting, leading to huge payments to participating providers in the latest Medicare legislation. These cuts were also a main cause of the nursing shortage, with nurses quitting as their hours were increased due to budget cuts. Medicaid is the other half of the story, especially on prescription drugs. Segregate Senior Medicaid from the program for needy families and manage it as Medicare Part E. The entire senior healthcare picture is then clear. Manage the entire program at the state level and increase federal revenues to save the trust fund through increased payroll taxes for Medicare or the incorporation of that tax into a broadened Business Income/Value Added Tax. Provide long-term care funding through a guaranteed loan program, so that patients avoid losing their fortunes when they get sick. Single-payer health plans for the elderly and the poor are recommended in small states.

Cost Control Using Medical Lines of Credit
Supplement Medical Savings Accounts with Medical Lines of Credit to cover the cost of co-payments and deductibles and to bridge the gap between medical savings and catastrophic insurance. Lines of Credit are also extended to the working poor whose employers refuse to provide any other insurance. Repayment of these accounts is through an automatic payroll deduction, limiting the risk of default. Lines of credit are tied to income, so that all costs after a certain point are deductible or even creditable, depending on income level. A line of credit approach for non-catastrophic events introduces price competition into health care, reversing the effect insurance has on consumption. Individuals who pay back more of their health expenses (which are still incurred immediately with a health security card) do not overuse the system, especially the emergency room.

Malpractice Reform
Single-payer malpractice insurance sponsored by state medical societies is becoming a real possibility, as insurance companies transfer their stock losses to their clients. Part of such an arrangement includes tying the adjudication of malpractice disputes to non-trial disciplinary proceedings before physician/citizen panels created by state practice boards, thus improving medicine and lowering cost.

A Reaction to President Bush’s Economic Stimulus Plan
The 2002 tax cut legislation has not ended the question of tax cuts, since most of the cuts have a sunset date. Dividend, alternative minimum and capital gains rates should be set to the 25% middle class rate and made permanent to facilitate later structural reform of the tax code incorporating a single rate. Tax cuts for the wealthy have been offset by deficits, the real fuel for the current recovery. Those who benefited from cuts to the top rates and net interest payments now put this money back into circulation by lending it back to the government. Of course, as a Dad, my preference is to simply tax the money rather than borrowing it. To end talk of a Death Tax, shift inheritance taxes from the estate to the heirs, with taxes paid only on cash disbursements or their equivalent from the income from or sale of estate assets.

The Real Solution to the Social Security Crisis
The solutions to the Social Security crisis offered by both parties involve increasing the savings rate, although the Republicans divert funds from Social Security taxes to do so while the Democrats offer incentives for additional savings and investment. Neither solution works in the long term, as the nature of the Social Security crisis is demographic rather than financial. To put the program on an even keel and to end the tragedy of abortion, alter the tax code to take the financial hardship out of having children and shift the responsibility for funding college from parents to future employers.

Basic Structural Reform to the Tax Code
The standard proposals to adopt a consumption tax or a flat tax have no chance of passage, since they penalize too many of our nation’s moneyed interests. A business income/value added tax is offered as an alternative. This tax proposal includes deductions for employer sponsored health insurance, home mortgage interest paid by employees or the employer for the employee and a credit for each child to be added directly to the employee’s paycheck, regardless of salary. There is also a credit for providing remedial, vocational and higher education to employees and potential employees, and a credit to fund faith-based and other private social service and educational agencies in lieu of taxation. Individual income and inheritance taxes below the $100,000 per year level are abolished (although sole proprietors with more than $10,000 in revenue still file Business Income Taxes). Income and inheritance over that level is taxed at a high enough level to pay the interest on the national debt, as well as debt retirement and international military operations. Business Income Taxes and miscellaneous fees and tariffs fund the remainder of government (except Social Security retirement), with a requirement that domestic spending be capped at Business Income Tax collections and fees.

State and Local Government Finance and Regulation
The 2001 tax cut and the collapse of the tech boom have led to a financial crisis at the state and local level. This shows the inadequacy of state and local tax arrangements. In the future, align taxes more closely with the social purpose of spending programs. Income taxes, which are redistributional, fund redistributional activities like education, aid to families, social services and even corrections. Sales taxes fund services to business, including a portion of public safety, and urban revitalization, while property taxes fund infrastructure and a portion of public safety. This proposal is particularly useful in Virginia, where taxes are generally inadequate to fund needed services. Linking taxing and spending demonstrates this. Business income/value added taxes are another alternative to replace income and sales taxes, especially if the federal government acts first. In Virginia, taking the lead on this reform requires a state constitutional amendment and repeal of the anti-Catholic Blaine amendment barring direct support for religious schools.

Transportation Systems
Electric cars eliminate death due to car smog and auto accidents, provided that central control and power are supplied through overhead lines with the entire system partially or fully underground. Fund this system with a combination of public and private investment and integrate it with mass transit, offering drivers the best of both worlds. Cleaner burning coal, nuclear fission and emerging fusion technologies power the system and also provide electricity to individual homes.

Social Security and Ownership
If President Bush had been serious about reforming Social Security he would have compromised to get his reforms past the Senate. Several of the possible compromises improve the program, although they would have alienated his base. First, link the employer contribution to average income, rather than individual personal income, and credit it equally for each full-time worker. Second, give workers the option of investing their personal retirement accounts in an Employee Stock Ownership Plan, rather than in an index fund, and require that representation on ESOP trusts and corporate boards includes factional representation for each type of employee (union, management, professional). Third, let Unions, rather than government sponsored brokers, manage the Personal Retirement Accounts of their members. Finally, since transition costs are most likely to be borne by wealthier taxpayers, either the personal income tax must be raised or the income cap on contributions to the trust fund eliminated.

Twenty-first Century Living

Building the Union-Owned Workplace of the Future
The hierarchical management and pay structures which are natural for capitalist firms do not work for union and employee-owned firms. For union and employee-owners to get the most out of ownership, they must change their mindset. Alter profit distribution to fully compenate employees for their share of the profits of the firm, based on the share of production cost contributed by labor. Represent union workers specifically on boards to the extent that their employees own company or ESOP shares. Distribute ESOP shares to employees equally, rather than as a reflection of income. Start share accumulation on day one, not after a year. Compensate long-term temps with shares of the client company. Staffing services must not be used to rob employees of ownership rights that are due to them. Organized labor then shifts its culture from contention and worker protection to ownership and innovation. If union and employee-owned firms out perform traditional firms, traditional firms either follow or fail.

Pay Equity for Unions and ESOPs
Management pay and selection change in the new culture of ownership. Managers bid for their positions in open auction, with ties settled by a vote of the employees supervised. Innovations are paid separately after results occur, rather than including the expectation of innovation up front in management or professional salaries. The firm also provides education, with salaries paid to students in training. Shifting the financial risk and training more individuals where there is a shortage equalizes salaries. Pay and benefits compensate for the supply cost of labor for young families and older workers. Families with young children receive higher pay tied to child rearing, while older workers receive pay for longevity through stock accumulation rather than pay increases, ending the perverse incentive to fire the most productive employees as their salaries increase. Financial services, such as payroll lines of credit and employer financed home mortgages are provided to employee-owners as a retention bonus. In a perfectly competitive labor market, salaries are equal and allocation between professions ideal. These structures create that type of market, also ending discrimination in the workplace.

21st Century Homes: Inter-Independence
Housing is to be provided in different ways to young and to long-term employees. Younger employees are provided dormitories or apartments. Longer-term employees are offered environmentally efficient homes with food production facilities and a shorter day so that they may grow their own food. This philosophy, called Inter-Independence, establishes an interdependent workplace for the purpose of making each worker self-sufficient. Employees who grow their own food decide what they want to eat and grow it. Basement agriculture provides retirees a productive activity. Technology developed for space colonies is adapted for home use, including the conversion of waste into grass into fertilizer, hydroponics and artificial protein synthesis. Small animals are also raised, especially chickens and sheep. The home produces wool and cotton, which is processed with automated equipment. Habitat size is adjusted for growing and shrinking families.

The 21st Century Career
After grade ten, young people either go down a vocational path or an academic path. Students in vocational training are sponsored by future employers and paid a salary. At age 20, after receiving a general education, some academic students enter the workforce, while others seek more advanced study, with training sponsored by future employers to the graduate level in exchange for a service requirement. In either case, students in training are provided housing and enjoy many adult rights, including the right to start a family. Medical students first train and work as nurses, then work more reasonable hours while in their post-graduate residencies because of this experience. Hospitals or health systems sponsor training and enough doctors are trained to influence the cost of medicine.

Mid-career workers are compensated with homes with food production facilities. Longevity compensation is through stock and dividends rather than through salary. Innovation is awarded through both cash and stock. If worker knowledge becomes obsolete, mortgage debts are forgiven and retirement funds fully funded so that retirement begins early. Intervention services are available for employees who under-perform or who lapse into addiction. Retired workers grow their own food, consult and continue to vote their stock, although surviving spouses are required to sell their stock back for an annuity, possibly to be set up through their house of worship. Young people learning how to grow food assist older retirees in managing their homes.

Professional Sports Teams and the Entertainment Industry
Celebrities still make big money in Cooperativism. The purpose of increasing equality is not to tear down the stars but to raise up new talent and support personnel. Teams are be bought out by their current and retired players in partnership with their home cities, to the extent that they play in publicly financed venues. Employee-ownership and a stronger team ethic increase pay equity. The entertainment industry also benefits from employee-ownership in the same way. A business income/value added tax credit is established for contributions to broad-based arts education, as well as for the training of up and coming talent. Ownership also helps prevent young talent from being exploited.

Global Justice for Workers

When Multi-Nationals Meet 21st Century Management
Multi-national firms that become union or employee-owned convert their overseas subsidiaries out of self-interest. These firms seek out talent missed by the current regime and generally attract the best workers. This causes entire economies to shift to 21st Century Economics and a middle class to develop in the developing world. Union-owned multi-nationals develop a common market basket of goods for transfer pricing and to expose exploitation in trade and economic policy. Publishing this information affects currency markets, which stabilizes at a new equilibrium. Stable currency markets lead to agreements on money supply growth and make currency conversion possible.

Bringing Socialist Enterprise into the 21st Century
Privatization in Russia failed because the Oligarchs were able to exploit new owners. The precepts of this book are useful to gradually restore ownership to Russian workers. In China, an evolving middle class eventually revolts, leading workers to demand renewed ownership stolen by party bosses. Firms that have not been privatized do so by awarding stock in relationship to tenure and holding it in trust until retirement, with representation on boards by occupational group and profit distribution for both labor and the ownership of capital. Outside capital is procured, but in a way that preserves the value of the worker investment.

Fighting for Justice
Ending exploitation requires establishing the rule of law, lest it be undone by fiat. Justice Advocates- International advocates the creation of the rule of law and the repeal of oppressive and exploitive law. It represents clients against exploitation by governments, employers and polluters, both in their native countries and in the home country of the multi-national corporation or the firm supplied by exploitive enterprise. It represents the rights of tribal peoples and those long denied land reform and works for electoral and campaign finance reform in the United States. A new International Bill of Rights will guide it.

Government Reform

Elections and Campaign Finance
Strengthening the link between presidential and congressional candidates decreases the influence of special interest groups. Sitting congressmen and congressional candidates select the presidential nominee and would endorse their choice for president prior to their primary. Losing presidential nominees also fulfill the function of party leader and propose a legislative program, especially when the government is divided. Funding for candidates for nomination is equalized to overcome incumbency. All contributions go to the party, who divide the proceeds equally between candidates for nomination, provided that the candidate brings in at least fifteen percent of the delegates to a special caucus to determine who is funded. In order to increase turnout in state and local legislative elections, proportional representation assures that every vote counts. When every vote counts everyone votes.

How to Pick Better Bureaucrats
A Senior Political Service program trains and pre-certifies presidential political appointees, speeding the transition when a new regime takes power and improves the quality of the appointed service, who now receive little training for their very important jobs. Executive Councils at the sub-cabinet level improve relations between appointees and the civil service. Appointees hold a majority on the council, but deliberate as equals with a career Senior Executive and a policy holdover from the prior regime.

Reform of the Civil Service
Giving federal managers more discretion to promote non-competitively ends the extreme waste of time many applicants go through in applying for positions where the winning candidate is already pre-selected by management. Another reform designed to increase recruitment is to delete questions on past drug use from the Personal Security Questionnaire while pre-employment drug testing is be made universal. Failing a drug test leads to treatment, not to dismissal. The current drug-testing program is draconian. Sick leave rules are modified, with the introduction of disability insurance, so that employees do not build up huge leave balances in this area. Annual leave is brought more in line with the private sector, with a lowering of the leave entitlement and the introduction of holidays in the week between Christmas and New Years. Armistice Day is replaced with Black Friday and Columbus Day is abandoned. Finally, it is past time to mirror industry and reduce the workday for federal employees and contractors to 37.5 hours a week and eventually 35.

Reorganization I: Consolidating Agencies
A simplification of the organization of the executive branch is proposed to increase accountability to the average citizen who does not understand the intricacies of public administration. I propose nine departments, with a Department of Human Resources created to include the Departments of Education, Labor, Veterans Affairs, and Housing and a Department of Science created from Commerce, Energy, Health, Transportation and Urban Development. To facilitate this reorganization politically, it is done concurrently with congressional committee realignment.

Reorganization II: Regional Government
A more radical reorganization is the inauguration of regional government. The number of regions is set at seven, with seven regional congressional caucuses and seven regional vice presidents. Each regional caucus gives full credit to the actions of every other caucus, with a national caucus of seventy members ratifying all regional decisions and deliberating on truly national issues. The President focuses on defense, foreign affairs and homeland security. The Vice President oversees departments of Treasury and Commerce, Civil Rights and Justice and Science, the Environment and Interior. The Electoral College eventually selects regional vice presidents.

Creating a World of Peace

Bringing Peace to Israel
Let us examine American support for Zionism in light of the role the U.S. plays in supporting and funding Israel. Two solutions to the crisis are possible. One is the creation of a Palestinian state for the Palestinians and the Israeli Arabs, who are still considered second-class citizens. A second solution that honors peace and justice is to consider both groups as full Israeli citizens and to annex the occupied territories. The second option honors the Law of Moses and is the only viable proposal if a goal of the Zionist state is the eventual restoration of the Holy of Holies. This is especially so given the evidence that the Ark of the Covenant is not buried under the Temple Mount but is instead under the protection of the Ethiopian Coptic Church.

Lessons from the War in Iraq
Now that the military question is decided, King Abdullah, the hereditary heir of the Prophet, is a better broker of Iraqi interests than either the current Authority or the United Nations. Many protested the war because of their continued anger at Bush. It is likely that Saddam Hussein believed, even in the face of a massive deployment and the rapid approach of summer, that the world would prevent the war. As a world government, the United Nations is not up to such a task. The part of international law that dictates American primacy in military affairs was all the international law the President needed to act. This primacy, absent the Soviet threat, is likely a major contributor to the world’s dissatisfaction with the war. The founders did not intend this primacy. It is potentially and actually a danger to liberty and no longer affordable. A better solution is the formation of an allied government along the lines of our American federalism.

Toward Allied Government
Until democracy is universal, an allied government is essential to share costs and decision-making. The government is composed of an Allied Congress, member regions led by regional vice presidents and a single President elected by both. The President of the Alliance is commander-in-chief of a common military. Domestic functions include a common Exchequer, an informal Conference on Regulation to facilitate cooperation among the regions, a Department of the Environment and a Department of Civil Rights and Justice.

Exploring Space

The Space Transportation System
As the need for a large Defense establishment lessens, the aerospace industry is encouraged to support and even undertake space exploration. Public funds for space exploration shift from direct spending to loan guarantees for private ventures using a consortium of aerospace firms. A Space Transportation System includes space stations, satellite construction, repair and maintenance in orbit, cheaper launching of materiel through ballistic means, space tourism, lunar colonies, space exploration, a private school for spacers, and technologies to further explore the earth’s oceans.

Going to Mars
A more advanced stage of space exploration is the colonization of Mars. Colonists on Mars and on space stations, as well as permanent space ship crews, purchase their own housing (like anyone else who works). A variety of funding mechanisms are explored for this venture, from broadcast rights to space tourism and the renting of facilities to scientists and businesses who want to do business with colonists. A set of space stations from Earth-orbit to Mars form an infrastructure for this project. Gravitational propulsion is also explored.

Applying 21st Century Management to Aerospace Firms
Either established consortia or new startups can use the advanced management practices presented in the discussions on twenty-first century living. Total Quality Management’s goal of driving responsibility to the lowest level is best matched by efforts to equalize pay. Otherwise, workers see through the hypocrisy and the program is doomed. Advanced recruitment and compensation methods are applicable to each type of operation, but in different ways. Older firms have access to capital but have to overcome an entrenched culture. Startups create a new culture but lack capital and have to compromise to obtain needed financing. Space exploration is the ideal venue to try 21st century housing, both for space and land-based personnel. ESOP structures are useful to buy out current owners or venture capitalists.

Ending Government as We Know It
The overall result of adopting these proposals is the end of government and the establishment of democracy in both the church and the workplace. Joining the discussion is the first step in this process.

Taking Action
A Yahoo discussion group starts the process. The next step is to form a political party, the Christian Libertarian Party of the United States. The Iowa Center for Fiscal Equity provides consulting services to move firms and governments toward reform. It also holds leadership conferences on the issues addressed in this volume. Justice Advocates International is the legal arm of the movement. International Currency Quarterly eventually publishes data on exchange rates versus price levels. An International Space Corps pursues private space exploration. Finally, the Christian Left discussion group is offered as a forum for rebuilding the Church.

Wednesday, June 02, 2004

The True Nature of the Social Security Crisis (Geocities Rescue)

Perhaps the most contentious issue in domestic politics is the reform of Social Security. Proponents of change point to forecasts that point to the need for benefit cuts or tax increases to insure program solvency. The Congressional Budget Office points to the increasing share that Social Security, Medicare and Medicaid require in the federal budget of the future. The real driver behind these trends is the aging of the Baby Boom generation. As this generation ages, it demands to use the Social Security benefits it worked for and the medical care to which it is entitled.

Proposed Solutions
Both parties offer various solutions. The President and the “free market” libertarians propose diverting a portion of Social Security payroll taxes to private investment in the stock market in the hopes that returns from the market will, in the long run, outpace the return on government bonds. Of course, this comparison is false, since the payroll tax is related to the performance of the economy as a whole rather than the performance of government financial instruments.

Defenders of Social Security point out that the real objection that the right has to the program is not its return, but its very nature as a redistributive social insurance program. In other words, they allege that the real goal of diverting private assets is to destroy the system, not to save it. Their defense has some merit. In response, progressives propose not only leaving Social Security intact, but increasing the income cap on contributions to capture as much of a share of national income as has been captured in the past (90%). Growing income inequality has left more wealth in far fewer hands, so to capture the same share of income, raising the cap is essential. Defenders of the program also offer their own way to increase national savings, especially among poorer citizens. Instead of redirecting payroll taxes, tax credits to establish savings plans are created so that individuals are forced, or at least encouraged, to save and invest in some form of index fund. In this way, even if no new taxes are raised, everyone has a nest egg to buffet them against the possibility of benefit cuts to Social Security. Investment of Social Security Trust Fund assets in the stock market was also explored for a time, although the tech bust and the return to deficit spending have put that talk to rest.

Similar Impacts
All told, there is not much difference between the solutions offered by the left and the right. The left proposes transfers form general revenues to increase savings while the President’s plan calls for a transfer of general revenues to the Social Security system for the creation of Personal Retirement Accounts (along with a cut in the payroll tax). The effect of this is not unlike raising the income cap on payroll taxes, because higher income individuals pay the lion’s share of the personal income taxes that finance the general fund. The President’s efforts at tax reform not withstanding, his economic advisors must know that cutting taxes further while increasing transfers to the general fund eventually lead a future Democratic president to increase taxes to make up the shortfall. It is simply a question of pay me now versus pay me later.

Likewise, the investment strategies are largely similar, especially if the White House submits Model Three proposed by the President’s Commission to Strengthen Social Security. This model includes an additional savings component, like the plan offered by the left. More importantly, both rely on the use of index funds, with proxy voting decisions left in the hands of fund manager who’s interest is the maximization of profit rather than the strength of the economy or the economic health of the workforce (whether domestic or foreign). Most importantly, both rely on either the performance of the stock market or the tax system to bolster the retirement savings of the Baby Boom. In another essay, I propose a better way to invest public retirement, union pension and supplemental savings funds by including employee ownership I address the difficulty of relying on enhanced savings for the retirement of the Baby Boomers here.

There is little difference between increasing taxes and increasing investment to provide for the increased needs of the Baby Boom generation. Relying on higher taxes by increasing the payroll tax broadly contracts the economy, as children work harder to pay for their parents and grandparents. Simply raising taxes on the wealthy, while attractive because it increases consumption and thus the economy, is likely not adequate to fully meet the enhanced retirement needs of the Baby Boom. Further, any solution that requires raising taxes now for future investment runs into the same problem as increased investment in the market: you can’t eat government bonds or stock certificates.

In the case of increasing stock investment, eventually the securities invested must either produce increased dividends or be sold in such a way that depresses the stock price. In this case, the worker of the future either works harder or has an increasing share of the wealth his or her labor produces go to the redemption of capital, leading to a lower wage. In the end, it matters little to the workers whether they pay higher taxes on a higher wage or lower taxes on a lower wage. The net wage they receive is about the same, and absent productivity gains, this wage is stagnant or decreasing. Of course, if productivity gains are assumed, then there really is no crisis, as the projected output of society meets the demand for goods and services. Let us assume for the moment, that productivity gains or the lack thereof are already part of the model that predicts the Social Security crisis, so productivity is not our answer.

Globalization Effects
Investing in the market does have one advantage that increasing taxes does not, the ability to rely on foreign labor without actually importing it. Globalization, where American firms exploit foreign workers on behalf of consumers, provides enough to the economy in the short run. In the long run, however, overseas workers begin to behave like their American counterparts. They gain a higher standard of living through work, demand more consumer goods and more social services and have smaller families. They eventually refuse to subsidize the American economy and then mimic it.

Addressing the Real Issue
If neither productivity nor globalization is the answer, what is? Simply put, the answer is a larger economy with more workers and more babies. The heart of the demographic crisis in Social Security is that the Baby Boom did not produce a large enough Echo Boom, at least not large enough to fund its own retirement. There are a variety of reasons for this, from the rise of women in the work force to the increasing cost of having a child with economic adolescence stretching into the 20s, to decisions to have less children or to forgo marriage and family entirely. None of this is news to anyone. What is news is that the solution to the Social Security crisis lies not in the financing of retirement but in financing childrearing and education.

The real solution to the demographic crisis lies in altering the tax code to increase the income of families through broadening the earned income tax credit for all families, regardless of income (either high or low) and making it creditable at withholding, essentially enacting a negative income tax. This is paid in one two ways. The first is to do so under personal income taxes. Doing so increases the direct role of government in redistributing wages, and is likely politically unacceptable for that reason. The second way is to end personal income taxation of all but the wealthy and shift the tax burden for wages to the employer under the Business Income Tax. Under this option, the same redistribution occurs, but it is less transparent to the average worker. This option leads to a shifting in how wages and taxes are distributed within companies, but does not change the tax burden for the average company, as the average employer has an average number of children supported by its output.

Finally, to make child rearing more attractive, the economic age of majority must be rolled back to the mid to late teens. At age sixteen or seventeen young people go into either vocational training or follow an academic track, with the key feature being that they are paid to do so and either the government, their school or their future employers bear the costs rather than their parents. Removing this long-term burden takes much of the fear out of bringing a child into the world, leading people to have more children and solving the demographic Social Security crisis once and for all.

The solutions I propose also offer a much better way to decrease abortion services than anything now offered by the pro-life/anti-choice forces. Providing for a higher income for every child and removing the fear of college costs takes away any economic incentive to have an abortion for already established families. Providing for the education and support of young adults also remove the negative impacts of early childbearing, again decreasing or eliminating the incentive for abortion. These impacts are important, because they add members to the coalition to pass these solutions that are not otherwise there. Conservatives think twice about rejecting these reforms if they are also a pro-life vote. Progressives are also hard pressed to stand in the way of proposals to enact a guaranteed income and a wage structure that empowers youth. Solving the demographic crisis takes the vitriol out of the funding crisis, making some form of compromise involving individual stock ownership and increasing taxes to fund the transition possible. Before we continue with Social Security, however, let us further discuss basic structural change to the tax code needed to end the demographic crisis.

Tuesday, June 01, 2004

Converting Socialist Enterprise to Employee Ownership (Geocities Rescue)

As nations move toward democracy and a free market they find themselves in possession of state-controlled industries that are better run as private sector enterprises. This is easier said than done. In the former Soviet Union, shares were distributed to employees while the currency was collapsing. The Russian workers did not know that the stock price was not as important as the maintenance of control, so they sold their seemingly worthless shares to the agents of what are now the Oligarchs. It will now take decades to undo the damage of a badly implemented privatization. Had these shares been held in trust and voted by occupational group, the rise of the Oligarchs might not have happened.

To reverse this trend in Russia, both a progressive tax system and a Social Security system are necessary. A Social Security system is developed in the way I have outlined above, with an employee contribution based on income and an employer contribution based on the average income in the federation. The employer contribution is paid in stock with structures in place so that management does not control how that stock is voted. Employee committees organized by trade union or professional society controls his stock, which is not available for sale until retirement. When enough stock has been purchased, profit is distributed to workers based on the labor cost as a percentage of total costs, with a separate capital distribution to the owners of capital, including the worker-shareholders. If these steps are taken, the oligarchy is overcome, bit-by-bit.

We welcomed then-President Putin’s ongoing investigation into how the oligarchy concentrated power. To the extent that corruption was used, sanctions criminal sanctions are needed against the oligarchs and their assets seized and redistributed to the employees.

Russia is also in dire need of infrastructure repairs and the modernization of agriculture. Construction contractors are needed to build roads. Set these firms up along the lines of Cooperativism. Contractors are also required to share their profits equitably as a contract condition. Roads are financed either through direct budget funding or through a license to charge user tolls. A commodity market and system of food storage reserves is to be set up along the American model. The world does not need to provide food aid to Russia. It needs to buy food from Russia.

Most of what I have said about Russia is applicable to China, where the connected have by and large circumvented the workers right to control the means of production. The prospects in China are dimmer, however, absent a revolution overthrowing the Communist Party. With the rise of a middle class in China and the continued tendency by its government toward repression, some type of revolution is almost inevitable. When it occurs, those corrupt officials who have deprived Chinese workers of their ownership rights are likely to be held to account, and the ownership of factories returned to workers.

There are likely firms in Russia, the other Republics of the former Soviet Union, China, Vietnam, Cambodia and Laos that have not been looted by party members or other Oligarchs. These are easily privatized. To do so, first determine the initial share distribution. Add the total number of worker-months for the active employees and give each worker one share for every month they have worked at the enterprise. Form caucuses of each occupational group and have them elect members to the board of directors based on their relative number of shares held. Shares are restricted from sale until retirement, so as not to repeat the mistakes of the recent past. After this is done, bring in consultants to determine the capital requirements for modernization. If debt is required and credit available, incur it. If debt cannot be procured, value the existing company compared to its value after modernization and set the value of the shares to be sold accordingly. For example, if the workers hold 100,000 shares and modernization doubles the value of the company, then the amount of shares to be created is an additional 100,000 and the value of each share is 1/100,000 of the total financed in the capital markets.

With the development of third world multi-nationals, converting formerly communist enterprise to 21st Century Economics speeds the world to a new economy and a new polity.

Employee and Union-Owned Multinationals and Trade (Geocities Rescue)

Union-owned multi-national corporations are an invaluable tool for modernizing the rest of the world. They have every incentive to do so. The extent to which foreign workers, especially workers in the same conglomerate, are under-paid, that is the extent to which American workers are at risk. When American workers adopt union-ownership, it is in their interest to extend the same system to each of their overseas factories. Likewise, when overseas worker learn of the good fortune of their fellows, they demand equal treatment.

Doing so dramatically alters the economies of the nations where union-owned firms have facilities. These facilities are quickly seen as the best place to work, so that American union-owned multi-nationals have the pick of the best workers and the best students. Firms establish universities in these nations or send their employees to the United States for school. Such firms also look to workers in the lower classes to find geniuses who have been ignored because of their color or class. As workers become owners and pay is increased, living standards rise and a middle class is formed. As living standards rise and elites have less economic influence, these nations become freer and more stable. Political reform sweeps the planet.

Trade, Currency Exchange and Conversion
As economies continue to integrate currency exchange rates become less exploitive of the third world, which in turn preserves the jobs of many American workers. Union-owned multi-nationals need to develop a better means of currency conversion for transfer pricing and trade. These methods rely on developing a common market basket of goods relevant to the needs of all of their workers. This market basket is then priced in both currencies, comparing the cost difference with the exchange rate difference. To be true to all of its employee-owners, it makes internal pricing decisions based on the single market basket, while capitalizing on these differences for other economic decisions.

Comparing the various market baskets cost differentials and the price differentials is also the measure of how much one economy exploits another. An examination of the effect of tariffs and subsidies is part of this analysis. Knowledge of these disparities is useful ammunition in defeating or modifying exploitive trade agreements, such as the North American Free Trade Agreement (NAFTA), as well as subsidies and tariffs. Publishing this information widely also has an effect, as the information itself affects the performance of trade and currency markets.

Using this information in these ways is as close as the world comes to the adoption of a single currency, although wide publication of this information is a first step in that direction. As tariffs and subsidies lessen and third world economies develop currency rates stabilize. When this happens, agreements on money supply growth targets are made between national reserve banks, controlling inflation and further stabilizing both prices and currencies, facilitating long-term growth and prosperity on a more global scale. These actions diminish the need for such institutions as the World Bank and the International Monetary Fund and their failed fiscally conservative policies. In fact, the spread of Cooperativism leads to a wide adoption of tax and social insurance policies suggested in this volume. Such policies are the antidote for the failed policies of the World Bank/IMF.

These metrics are also useful to accurately measure the health of developing economies and ease the transition to a free market system in the formerly Communist world.

How to Pick Better Bureaucrats (Geocities Rescue)

When people complain about unelected bureaucrats making policy, they picture career civil servants, like the overworked clerk who was seemingly rude to them when they were in line for some service, such as mailing a letter or renewing their car tags. In thinking about bureaucrats in this way, it is a short step to regard the permanent government as illegitimate. This is an error in the popular understanding, as the types of bureaucrats who make policy decisions are by and large political appointees who are accountable to the office holder who appointed them. Personnel reforms designed to increase the caliber of senior career servants are misguided, as most career servants are already quite well trained. It is time to relocate the target of reform to where it is needed most, the political service.

This essay addresses the establishment of a cadre of experts for the filling of high-level federal appointments and the formation of councils to ensure that these leaders and the senior civil servants are reading from the same page.

Establishing a Senior Political Service

With every new administration there is a scramble to fill Federal Executive Appointments. The Transition Team is flooded with resumes from industry, academia, the party faithful and major campaign contributors. Although some of these have served previously in government, many have not. Additionally, many who are well qualified to serve withhold their service because of the many ethics and disclosure requirements for high office that tend to overwhelm the first time appointee.

Little is provided to political appointees in terms of training, with the exception of brief orientation sessions and White House Briefings. This is in contrast to their senior career counterparts, who are required to undergo an extensive training program and have many years of federal service under their belts.

Compounding this problem is the state of relations between political appointees and career executives over the past twenty years, where political appointees are discouraged by the administration from making meaningful contact with their career counterparts and involving them in decisions. This goes beyond the natural hesitation all administrations experience at the beginning of encountering a bureaucracy "laced" with the holdovers from the prior administration to what has been described as "fear and loathing." Aside from the human relations and staffing effects of this situation the administration has denied itself the experience base (which is bipartisan) that the civil service provides for policy execution, and even policy development.

To improve agency leadership, establish a Senior Political Service for each major party (or national campaign). Members of the Service are nominated by each of the major parties/candidate organizations and certified by the Office of Personnel Management with oversight from the Merit Systems Protection Board to insure partisan neutrality.

Candidates for these positions come from Capitol Hill staff and former members, academia, industry, the bar and the interest advocacy community. To obtain certification candidates:

• Obtain or hold graduate level education or significant experience in the policy area for which they seek employment;
• Obtain graduate level certification or experience in the operations of the Federal Government in general, especially in regard to federal management and relations with the senior executive service;
• Obtain and maintain the required security and financial disclosure clearances.

The Office of Personnel Management coordinates an educational program similar to that provided to potential Senior Executive Service members. It includes both OPM, Federal Executive Institute and University based programs. The Federal Government and the nominating partisan/campaign organization share the costs of this program. The result is a ready pool for political transitions and the filling of vacancies between elections.

Establishing Executive Councils

The Senior Executive Service is politically neutral. However, administration, including the Senior Political Service proposed above, is more politics and public relations then public policy development. Some deliberative mechanism is needed to close the gap between these two worlds, giving a voice in the councils of government to the civil service and providing political appointees with a reason to serve longer. To do this, I propose the establishment of Executive Councils.

Executive Councils serve at the major administration level where a political manager interfaces with the Senior Executive Service. The Councils have five members, three of which are political appointees from the current administration. Its membership is proposed as follows:

Adminstrator
Serves at the pleasure of the President and acts as Chair. Graduate member of the Senior Political Service.

Assistant for Policy
Appointed for a 4 year term by the Cabinet Secretary. Member of the Senior Political Service.

Senior Assistant for Policy
Appointed for an 8 year term by the Cabinet Secretary. Member of the Senior Political Service. Replace by Assistant for Policy if unable to serve full term.

Tenured Assistant for Policy Appointed by prior administration to provide for institution-al memory. Member of the Senior Political Service. Replaced by a Senior Execuitve Servant if unable to serve full term.

Staff Assistant for Policy
Appointed for a 4 year term by the Secretary. Member of the Senior Executive Service

This schema provides popular control of the government, while at the same time providing for stable leadership. A change of course still occurs with every new administration. However, it is not allowed to occur without listening to the past. This proposal, combined with the Senior Political Service, does more to provide responsible government than any other possible administration reform because it establishes a culture of stable leadership, rather than government by the flavor of the month.

Federal Government Reorganization (Geocities Rescue)

The Federal Executive Branch consists of fifteen departments at last count with a multitude of independent agencies. Navigating among federal agencies and departments, as well as identifying relationships between executive agencies and congressional committees is difficult for the average citizen. Consolidation of agencies with similar or overlapping functions serves the needs of the citizenry, both through lessening confusion and through lessening the perception of the government as a sprawling monster out of control. The creation of the Department of Homeland Security is an example of the kind of consolidation that lessens the appearance of governmental sprawl. Continue this principle until a government structure that the public understands is achieved. Having less departments gives the average citizen the impression that the cabinet secretaries actually talk to the President. The current organization does not convey this impression.


Form an inter-branch committee to reorganize both branches in a consistent manner. This group considers changes to congressional committee structure and the reorganization of executive branch agencies. Harold Seidman and Robert Gilmore, authors of Politics, Position and Power, suggest that any reorganization of the legislative branch consider the organization of the executive branch, and vice versa. They have the right idea.


The following listing of agencies and the high level organization chart are suggested as a starting point for such an effort. Each post-reorganization executive department is listed, followed by the department or independent agencies transferred to it. The main aggregating departments are the Department of Human Resources, which hold the agencies reporting to what was the Senate Education and Labor Committee, and the Department of Science, which hold the agencies reporting to the old Senate Committee on Commerce, Science and Transportation. Quasi-judicial agencies are linked to the department for administrative purposes, while budget requests, regulatory activity, and judicial activity remain independent. At the end of the list are the agencies that are to remain independent.





Department of Agriculture
Commodity Futures Trading Commission
Farm Credit Administration

Department of Defense
Selective Service System

Department of Homeland Security
General Services Administration

Department of Human Resources
Department of Education
Department of Labor
Department of Veterans Affairs
ACTION
American Battle Monuments Commission
Appalachian Regional Commission
Food and Nutrition Service (USDA)
Housing (HUD)
Pension Benefit Guarantee Corporation
Federal Mediation and Conciliation Service
Federal Labor Relations Authority
Merit Systems Protection Board
National Labor Relations Board
National Mediation Board
Office of Personnel Management

Department of the Interior
Environmental Protection Agency
Forest Service

Department of Justice
Equal Employment Opportunity Commission

Department of Science
Department of Commerce
Department of Energy
Department of Transportation
Consumer Product Safety Commission
Federal Communications Commission
Export-Import Bank of the United States (EXIMBANK)
Federal Maritime Commission
Federal Trade Commission
National Aeronautics and Space Administration
National Highway Traffic Safety Commission
National Transportation Safety Board
Nuclear Regulatory Commission
Overseas Private Investment Corporation
Public Health Service (DHHS)
Tennessee Valley Authority
Urban Development (HUD)

Department of State
Inter-American Affairs Foundation
Peace Corps
Broadcasting Board of Governors
U.S. International Trade Commission
Voice of America

Department of the Treasury
Health Care Finance Administration
Social Security Administration

Agencies Remaining Independent
Federal Reserve Board
Federal Deposit Insurance Corporation
National Credit Union Administration
Securities and Exchange Commission
Postal Rate Commission United States
Postal Service

Adoption of Executive Reorganization along these lines makes congressional oversight easier to follow for the players and the public. It also makes the Federal bureaucracy more understandable to the average citizen who uses its services. Overall, these changes help the cause of representative government and greater accountability.

Medical Malpractice Reform (Geocities Rescue)

A major cost driver in the consumer health insurance crisis and the burgeoning of health insurance costs is the malpractice insurance explosion. There are two aspects of malpractice reform worth discussing, insurance reform and procedural reform. Insurance reform is needed because there is more to the current malpractice insurance crisis than high damage awards. Insurance companies have been in financial trouble of late and the cause is not entirely jury awards. Insurance companies maintain a trust fund of investments to insure that benefits are paid. They were not immune from the effects of the stock market meltdown in the early twenty-first century. In order to make up for these losses, insurers are forced to raise their rates. I suspect that because doctors and hospitals must maintain insurance to practice and because they can afford to pay higher rates, they are bearing more than their fair share of the burden. Doctors won’t put up with this for long. While many of them cringe at the idea of single-payer health insurance, they take a different view of single-payer malpractice insurance sponsored by their state medical societies. This is an idea whose time has come, the mere discussion of which makes the insurance industry take notice.

Procedural reform is also necessary, as record jury awards have increased costs, as have large pre-emptive settlements (which are often sealed, allowing bad doctors and hospitals to continue to practice undisciplined). Clearly some form of procedural reform is necessary.

Plaintiffs in malpractice cases have two motivations. The first is to cover the direct cost of medical malpractice, which consist medical expenses already incurred and the cost of corrective care (if possible) or, in the case of catastrophic mistakes, long term care. The second is punitive; to punish the offending physician and make sure no one else is damaged (the cynical would say that greed is also a factor, especially the greed of litigators). A solution to the crisis addresses these motivations, while providing a system to reduce legal costs.

A holistic solution to the malpractice insurance crisis ties malpractice insurance to the disciplinary procedures of state medical societies, which are strengthened. A newly created State Health Board establishes these procedures. State Health Boards establish practice standards and create local Medical Review Panels. These panels contain members from local medical society and community. The panels secure group malpractice coverage for all local doctors. A claim against one then becomes a claim against all. Doctors then have an interest in policing their own to protect themselves. To save risk, interns and residents get more supervision and more humane work schedules. Local medical societies take a proactive role to increase the quality of health care professionals.

Disciplinary procedures are strengthened. Currently, medical peer review groups are seen as protecting their own. This perception is changed, and procedures put in place so that it has no basis in fact.

Medical Review Panels review and approve all voluntary arbitration of malpractice claims in secret. If arbitration fails, a public hearing is held to decide claims. The Medical Review Panels discipline medical personnel and clinics and set compensation and punitive damages. Decisions are then appealed above trial court level. Medical complaint procedures are public and readily available. Any patient with a care complaint is assured easy access to medical review of his case and physician.

Proceedings of such actions are more formal than current peer review, but much less formal than a trial. Medical advocates represent both sides, with only limited access to legal counsel. Doctors still settle before review (out of their own pockets), though the local medical review board reviews the settlement.

If malpractice is found, medical review boards do two things. First, they authorize payment from the local society malpractice insurance fund to correct the problem, cover past medical costs and provide for long term care if necessary (God forbid). Second, they discipline the offending member, imposing any of a variety of sanctions from retraining to license revocation, including punitive finds which go to the patient and be paid out of the physicians own pocket (and if necessary garnished from his income). These sanctions are made public. Medical advocates are compensated for their time, but the percentage contingency fee is lower as the award increases.

Each side gains by giving up something. Patients gain better care, as bad doctors are disciplined, but give up astronomical damage awards (as do their advocates). Insurance companies face less risk, but charge lower premiums and face stiffer competition, since only one is allowed to underwrite the members of each state’s medical society. Doctors benefit from lower premiums, but give up the kind of self-regulation they now enjoy. Bad doctors lose their ability to harm people, but no one is shedding any tears over this.

Medical Lines of Credit, a solution to overconsumption (Geocities Rescue

Limited health insurance reform has occurred, with the inclusion of Medical Savings Accounts on a limited basis. This may yet reduce the demand for health care and lower medical costs. However, their usefulness is limited to those with full time jobs or government benefits. They do little for the under-employed and the newly employed, or for low income elderly who are not yet offered prescription coverage. This essay offers a new tool to lower health care costs, the Medical Line of Credit.

Medical Lines of Credit (MLCs) are credit lines available to employees to purchase routine medical care, satisfy co-payments and obtain health care services, such as chiropractic and message therapy, which are outside of traditional health care plans. To settle outstanding balances 8% of annual use plus interest is withheld from employee pay or benefit checks. This automatic withholding keeps MLC interest rates down. To further depress interest rates, sponsoring employers are required to guarantee the balance. Balance repayment is on pre-tax income, cutting individual tax liability.

Medical Lines of Credit for co-payments give people access to doctors and medication that otherwise do not have it. Co-payment requirements force individuals with marginal incomes to choose between food and medicine. For sudden emergencies, MLCs remove this dilemma. As part of a more comprehensive reform, adjust co-payment and repayment requirements by income level, with partial repayment by the government under a medical care tax credit.

Medical Lines of Credit are provided in concert with a catastrophic health insurance plan. MLCs act as a disincentive to overuse because the balance is eventually paid back. Elective and non-critical care are demanded less, reducing the use of the medical care system and thus lowering cost. Individual economic incentives are a much more effective means of cost control than top-down measures, such as those used to control social security costs, which often hit the least able to pay the hardest. MLCs are designed to provide greater access to the working poor in a way other plans do not.

A maximum-balance trigger for non-elective expenses is included to have a portion of the outstanding balance covered by insurance so that families are not driven into bankruptcy by sudden high expenses or chronic illness. The inclusion of such a trigger expands the scope of "catastrophic insurance" portion of the health care plan, allowing higher premiums than normal catastrophic insurance because more risk is covered.

An alternative to such a trigger is a tax credit for MLC costs above a certain level based on income, paid at withholding. For individuals dealing directly with the health insurance provider, this would adjust the premium, with the provider billing the Internal Revenue Service for the balance. For example, if an individual had a payment obligation of $90 per month but was entitled to receive a tax credit for any payment over $45, the employer adjusts the federal tax obligation or the provider bills the government $45 per month.

Finally, the Medical Line of Credit is also be used in concert with MSAs, as MLCs cover the gap between the catastrophic deductible and the MSA contribution or to cover expenses once the MSA is exhausted for the year.

The Causes of the Health Care Cost Explosion
The debate on the causes of the health care crisis has not, as yet, explained all the factors leading to the health care cost explosion experienced by firms and individuals. Although mismanagement and cost shifting explain much of the recent cost explosion experienced in recent years, they do not explain all. Over-consumption by the insured, especially when that insurance is employer provided, also deserves some large share of the blame.

Over-consumption is easily understood using economic theory. Health insurance obscures the total cost of health care consumed, i.e. the user directly pays only a small fraction of the true cost, the rest being paid by insurance (which is paid for directly or indirectly by the beneficiary - often through an employment benefit in lieu of income).

Originally, insurance was meant to ease access to health care in an emergency through risk sharing, so finances do not stand in the way of medical need. However, in recent decades non-price competition by the insurance companies to offer more benefits has led to an expansion of health insurance to an omnibus system of health coverage, which over-covers the insured - thus taking away the emergency nature of it and causing costs to skyrocket. This happens because the economically rational consumer seeks a level of health care at a level corresponding to out of pocket costs, as the indirect costs are paid for him or paid directly in a periodic premium regardless of use. As the out of pocket costs are much less than the total cost, a much higher level of health care is purchased than is the case in the absence of health insurance.

Over-consumption by insured individuals leads to an over-demand for health care. To meet this demand, health care providers who once charged $15 for an office visit or procedure now charge $75 (assuming an 80% deductible the patient pays $15) to provide the same level of service (even after inflation is factored in). If the provider did not increase her fees she is working harder for less or the same money, which is hardly fair or rational. These fees increase to meet the over-consumption of health care have resulted in the cost increase currently being experienced in the health care system (which eats up an increasing share of the gross national product and continues to in the foreseeable future unless action is taken to curb it). The vast majority of people don't feel the impact of increasing costs, as insurance provides a buffer. Only the uninsured feel the pinch. Further, this lack of visibility by the average consumer into cost has taken visibility away from the other sources of cost increase, the malpractice crisis and the over-purchase of high technology big-ticket items.

The increase in cost has led insurance companies to an effort to control costs elsewhere by reducing coverage - adding such things as pre-existing conditions clauses and limitations on the insurance of high risk activities and limiting coverage for small group clients. This is only rational, as costs are out of control. The result of this const control is mandated coverage rules on behalf of the insured through their state insurance commissions (such as the right to mammography in the District of Columbia), which further increase costs and lead to even higher premiums (for both corporations and individuals) and the rise of the legions of health care bureaucrats who keep up with the paper chase required in both doctors' offices and insurance companies.

The hardest hit by over-consumption by the insured are the uninsured. Without insurance their out of pocket costs are up to five times higher than they would otherwise be, effectively pricing them out of all but emergency health care. Without over-consumption some basic level of care might have been possible. However, because they often cannot afford insurance, due to low income or a marginal employer who cannot afford to provide insurance and stay in business, they go without health care, as do the chronically ill who change jobs.

A final factor in over-consumption of certain services, particularly the emergency room, is the lack of sick leave among the working poor. Even given the most generous insurance package or adoption of single-payer, these individuals continue to demand services on Sunday nights at the E.R., which is the only time they are able to take a break from work to take family members to the doctor. Any solution to the problem of over-consumption need also include the right to sick leave for every worker.

Health Care for Seniors (Geocities Rescue)

A large portion of the looming budget crisis is the health care of seniors. While recent budgetary projections show a delay in the day of reckoning, crisis still looms in both the Medicare and Medicaid programs in the out years.

Budgetary balance in this area has been sought through the cutting of cost, with no action on the revenue side. In response, HMO providers have been leaving the Medicare program, which is an indication that the limits of cost-reduction have been achieved, if not exceeded. This has caused hospitals to cut costs in ways that do not serve patients well, especially in the area of nursing care. Nurses know when they are over-worked and under-paid, and when they are they leave the profession. The situation has grown so bad that the recent Medicare Prescription Drug Bill included massive payments to HMOs and to rural hospitals to redress the balance. It is hoped that this will end the nursing shortage, as hospitals expand their nursing staffs so that the workload is no longer crushing. While correcting the spending side was essential, doing so without addressing revenue merely worsens the budgetary problem our children face.

Recent Medicaid initiatives have focused on coverage for uninsured children, with proposals to cover entire families. While this approach has merit in dealing with the problem of poor families, it ignores the senior health care side, which is the major cause of program growth.

Medicare Part E
To better address Medicaid for indigent seniors, it is recommended that these costs be segregated into a separate program, designated as Medicare Part E. This allows policy makers to give this facet of the program the attention that it deserves and consider it in concert with the remainder of Medicare, including the new drug benefit. One way to more cheaply provide such a benefit is the use of medical lines of credit, which are discussed in the next essay. Undertake both the current program and the new benefit on a state-by-state basis, allowing for the creation of state-wide purchasing pools for program recipients and for the targeting of extra resources to states with larger elderly populations. This also allows separate reforms for the remainder of the Medicaid program and lowers the cost base of any purchasing pool created to provide services to the poor and uninsured.

Funding Levels
There remains the problem of overall fund balance. Segregation of senior Medicaid, more than ever, points to the need for increased funds. Seniors, their families and providers have so far born the entire cost of programmatic savings. A more honest approach is to increase the Medicare withholding tax and channeling some portion of it to Medicare Part E. Such an approach also serves the cause of equity. Currently, some childless seniors are in danger of being driven back into poverty by further cuts and premium increases. The children of seniors, who in many cases are seniors themselves, also bear the brunt of cost cutting measures. As previously stated, providers are leaving the senior health care system, reducing the quality and quantity of available care. Additionally, taxpayers whose parents have already passed gain an unearned benefit from further cuts. Clearly the most equitable solution to fund the existing Medicare program, prescription drug coverage and senior Medicaid is an increase in the Medicare Withholding Tax phased in over a period of years, or if strurctural tax reforms proposed in later essays are enacted, absorbing the additional revenue requirements in a higher Business Income Tax rate.

Long Term Care
Long term care a major component of health care for the aged, as well as for the victims of catastrophic accidents or disease. Address these costs separately through a Federally guaranteed Line of Credit of up to $5 million. Set asset exposure at 90% for individuals and 45% for families (with the federal government covering any defaulted amounts above asset exposure). This allows people to afford the care that they need.

Single-Payer Option
Smaller states and the District of Columbia often lack enough insurers to ensure competitive pricing of health care services for both seniors and the poor. A single-payer option is possible for these states. When this option is taken, include cost control measures, such as deductibles, co-payments, medical lines of credit, and medical savings accounts.

International Space Consortium: The Twenty-first Century Career (Geocities Rescue)

International Space Consortium: Twenty-first Century Homes: Interindependence (Geocities Rescue)