Can't argue with this conservative? overview

From WSJ 1,13,2012 - Irwin M. Stelzer writing in the Weekly Standard, Jan. 16:

America's more or less free-market capitalism is not under threat from Marxist-Leninism: That system's demonstrated failures have consigned it to the ash-heap of history. Nor is it under threat from China's system of managed economy plus political repression: We can't even abide police breaking up a disease-infested occupy-something-or-other encampment. It is not even under threat from socialism, the hysterical charges of some anti-Obama extremists notwithstanding.

No, it faces a far more subtle enemy—the gradual loss of acceptance of the idea that markets more efficiently allocate resources than governments, of the parallel idea that properly but not excessively regulated markets produce unparalleled levels of material well-being (something Marx conceded), and, finally, of the conviction that material prosperity is fairly shared among all who participate in its creation, with enough left over to care for those too ill, old, or otherwise impaired to participate in productive activity. When the broad consensus erodes that capitalism as practiced in America is better at creating and distributing wealth than any other system, the way is open for fundamental legislative and regulatory changes that strip the system of its flexibility and innovative drive.

Which is what makes the behavior of the leaders of our financial sector so inexplicable. Start with a few widely agreed facts. The financial sector does not have a recent history of which it can be proud. Investment banks bet their own money that the mortgage bubble would burst while at the same time advising their clients to buy mortgage-backed securities. Managers of our largest banks took on risks they did not understand, safe in the knowledge that they were too big to fail—that the government would have no choice but to bail them out in order to avoid a cataclysm, or at least a deep recession. Compensation was decoupled from performance, with failed executives tottering off onto their country clubs' golf courses after pocketing multimillion-dollar bonuses and being awarded the use of company jets and office facilities.

Some idea of the mindset of the leaders of the financial community can be gleaned from their response to criticism. Lloyd Blankfein, head of Goldman Sachs, claimed to be doing "God's work," a linking of God and Mammon that might have come as a surprise to the Lord.

Art

"The best art always gives a surprising, somewhat alien first impression, as absolute beauty would give. And then comes mutual conquest, and we are saved; the extraordinary makes us extraordinary." Juan Ramon Jimenez

An Interesting Graphic

Self-Fulfiling Prophecy

Well, it's starting to happen big time. The voters and politicians arguing for less government are starting to get their wish. The PA Department of Labor and Industry reports that there are 20,600 less local, state and federal government employees in Pennsylvania from last November (2011) to this November (2012). And these numbers don't even include teachers. As one would expect, this is starting to have ramifications. And what may they be, you ask? How about significant backlogs of work in all kinds of government agencies. Of course this will result in more of an outcry of government not doing its work which will result in more arguments for government cuts. Grover Norquist and his Americans for Tax Reform are slowing "killing the beast." The beast, by the way, is government. If you are a public administrator, what to do?


Stateline took an in-depth look at what’s causing growing backlogs of work at state agencies across the country and came us with observations that state leaders should consider:

1. Prioritization is no panacea: When agencies have more work than they can handle, setting priorities in a systematic way becomes critical. However, developing and implementing a reliable method of sorting “high priority” work from less urgent tasks is itself a time-consuming job. What’s more, it can reduce an agency’s sense of urgency for completing work deemed “low priority.” All the pushed back work doesn’t go away. 

2. Process matters: Backlogs are often blamed on budget cuts and staffing reductions. But especially in large bureaucracies, there’s often another problem below the surface: red tape. Unnecessary steps and paperwork accumulate. Ironically, the sense of crisis that comes with a backlog can provide an opportunity for an agency to streamline workflow procedures. 

3. Technology can help — and hurt: Budget crises often force agencies to push back technological upgrades. But delays can come at a high price. Outdated IT systems — from inadequate server capacity to poor data management capabilities — can make backlogs worse.  

4. Fill your vacancies: Some backlogs are the result of layoffs, furloughs and hiring freezes. But in a surprising number of cases, the staffing challenges are more systemic — the problem isn’t that the agency doesn’t have budget authority to hire more people but rather that the agency can’t keep its positions filled. As workloads and job stress creep up, burned out workers quit. Managers, stretched thin, fall behind on recruiting and hiring new workers. But setting aside time for such tasks and maintaining a low vacancy rate is critical to creating any long-term stability in a backlogged agency. 

5. Don’t forget training: Budget cuts have driven some state agencies to skimp on training for frontline workers. That can backfire fast, especially in agencies with high levels of turnover and lots of new employees to bring up to speed. Poor training breeds backlogs: Employees who don’t know what they’re doing will make mistakes and slow work processes down. It also breeds more turnover: Employees who don’t have the tools to succeed in their jobs are likely to leave. 

Circular Firing Squad

It's a rare day indeed when the Wall Street Journal in its lead Editorial (Wednesday, December 21, 2011, p. A18) calls the activity of the Republicans in US Congress a "Circular Firing Squad." Usually this is a term reserved for Democrats. It looks like the House Republicans, by voting down the Senate's two-month extension of the "tax cut" (as described by the Democrats) or "tax holiday" (as described by the WSJ), have positioned themselves in a corner. The WSJ editorial writers suggest the Republicans put up the truce flag and come back to fight another day. Since the tea party adherents in the US House have been using metaphors from the movie Braveheart to describe recent political activity, one could say that if they don't retreat they have a good chance of being drawn and quartered by the voters.

Employers and Ex-Offenders

Today I met with the head of our regional chamber about how the Capital Region Ex-Offender Support Coalition (CRESC) can better connect with the employer community around the issue of hiring ex-offenders. With me was Bill Peterson, Vice-Chair of CRESC and President/CEO of the Center for Community Building, Inc. in Harrisburg. We made the case that, given the budgetary pressures at all levels of government, policymakers are looking for ways to significantly save tax-payers dollars. What is starting to happen in other states (and what we believe will begin to happen in our state shortly) is that it doesn't matter if policymakers are republicans or democrats, fiscal constraints are forcing changes in the length of the incarceration of prisoners. This means that there will be increasing levels of ex-offenders currently serving time for non-violent offences that will be released into the community. For example, 40% of the 51,000 prisoners in state institutions are serving time for non-violent crimes.

The chamber president agreed the way to approach employers is to focus on how the job applicant (ex-offender or not) can meet the specific needs of the employer. He also gave a number of in-depth suggestions on how CRESC could improve its overall approach to employers. Bill and I will bring back these suggestions to the full Coalition. It was a successful meeting that demonstrated the business community's interest in improving the overall society.