john maddente | midwestern clarity

OMB Chart Excerpts published at Examiner.com A n editorial grabbed my attention recently.  Titled, "The Right Way to Balance the Budget" the piece was published on page A13 of the Wall Street Journal on December 29th.  Three scholars from the American Enterprise Institute (AEI) collaborated on the aforementioned article.  They examined the likelihood of success coming from three choices we have to address our deficits and the national debt . The choices of course are: tax increases, spending cuts, or a combination of both. AEI website: Andrew Biggs AEI website: Kevin Hassett Two PhD economists, Andrew Biggs (London School of Economics) and Kevin Hassett (University of Pennsylvania) and economic research analyst Matt Jensen, argue their case by building on the prior work of two Harvard economists: Albert Alesina and Silvia Ardagna. Messrs. Biggs, Hassett and Jensen conclude the primary way to fix our fiscal predicament is singular in nature -...

Public Notice is " an independent non-profit dedicated to providing facts and insight on the economy and how government policy affects Americans’ financial well-being ."   Here's a slide from them (with holiday flair) called "The 12 Days of Government Spending"

Wikipedia Here are excerpts from a reply to two dear friends - disguised with two fake names - Mortimer and Stanley.    These guys fall at opposite ends of the political spectrum, but their exchanges are always respectful.  The three of us have been "sparring" since our teens.  Some text changed, but it is close to the original version when I responded to their post-election e-mail dual of 11/3/2010... "Dear Mortimer and Stanley, I love your passionate sentiments about today's political landscape and all that ails us.  I'll begin with the standard (but in this case truthful) comment - I agree with both of you - to an extent. Ah, the fun of going last... I'll start with Stanley and his Mortimer rebuke - " Greed and avarice are as old as the Bible, Morty. And the Democrats are experts on that ."   Stanley, I assume you mean Dems are experts on greed, not the Bible.  Well, some Republicans also know greed, as do some Libertar...

C onsider the national debt which as a percentage of gross domestic product is at its highest levels since World War Two.  Click here for a real-time depiction of our debt and consider the faith that the rest of the industrialized world has in the United States as a beacon of financial stability.  What happens when that changes?  Why are some observers more worried about climate change than global economic calamity that is looming in our midst?  We need more leaders like Mr. David M. Walker.  This post is dedicated to his mission.  Some might think I'm joking when I say that what we need in Congress and the White House right now are accountants .  I'm actually serious.  Mr. Walker, by the way, was an Arthur Andersen partner several years ago.  We need people who can balance a budget and say "no" and be proud to say no because it is right and just.  The only anecdote for a nation...

Yesterday morning I listened to a radio program that sounded like a Town Hall celebration of Tom Barrett's Gubernatorial bid.  It was broadcast live from the University of Wisconsin - Milwaukee.  I couldn't listen to the whole program but the thirty minute portion I heard included Mr. Barrett's diatribe against Wisconsin's $2.7B structural deficit and his plan to end it which includes tax increases on "the wealthy."  Here's what bothers me... Not once in the first thirty minutes of Mr. Barrett's monologue did I hear a single reference to a spending cut .  If I missed such a bombshell in the remaining minutes of the program, please let me know.

I'm supporting Chris Kapenga for this seat because we need a hard-nosed fiscal conservative now more than ever.  If only we could have more accountants in the state legislature.  I liked something I found on Kapenga's website which I repeat below: By William J. H. Boetcker •You cannot bring about prosperity by discouraging thrift. •You cannot strengthen the weak by weakening the strong. •You cannot help little men by tearing down the big men. •You cannot lift the wage earner by pulling down the wage payer. •You cannot help the poor by destroying the rich. •You cannot establish sound security on borrowed money. •You cannot further the brotherhood of man by inciting class hatred. •You cannot keep out of trouble by spending more than you earn. •You cannot build character and courage by destroying men's initiative and independence. •And you cannot help men by doing for them what they can and should do for themselves.

O ne week ago today, I was shocked and saddened to read the obituary of  Mark Stoiber .  Mark Stoiber's cause of death was a Pulmonary Embolism .  Mr. Stoiber was Co-Founder and President of The Sleep Wellness Institute, a successful Milwaukee-area operation that helps people with sleep apnea .  He was also a proud husband, father of three children and a man of quiet confidence, patience and intelligence.  Moreover, Mark Stoiber truly cared about others.  It might be the most cruel paradox of this life, that a good man like Mark Stoiber is taken ten days before his 48th birthday, while countless bastards live peaceably into their nineties.  Why?  Maybe when we meet the Creator, we'll learn why.  

C redit-related causes of the  Great Recession  included: lax underwriting standards (abetted by government programs and the GSEs), overuse of ARMs (because the borrower couldn't qualify for a fixed rate note), too much cash-out financing and artificially low interest rates.  Yet, the Wall Street factor (i.e. securitization of those obligations and excessive risk-taking) always seems to take center stage in the debate.  I disagree with that emphasis because: 1) the Street factor already gets most of the attention in the press, 2) regulatory reform for banks is a foregone conclusion, 3) Wall Street's culpability came during and after credit issuance to subpar borrowers, not beforehand .  It's the third point that is lost on some who look only at the Wall Street role in this disaster.  It could only have been possible with easy credit extended to in-over-their-heads borro...

Wikipedia image Another Progressive I've known as long as Mortimer (since childhood) read my last post - I'll call him "Cameron" - and he takes issue with my claim, "Wealth re-distribution is the Excalibur sword of most Progressives."   Cameron feels it is only reconciliation for "30 to 40 years" of growing disparity between the wealthy and the less fortunate.  Cameron's beef is summed up thus: "So John, I have a question for everyone out there that talks about this so called wealth redistribution. Based upon the facts I have cited, why was it okay for that wealth redistribution to go on during the 80's, 90's and into the 2000's, but now it's not when it goes the other way around?" "Cameron, Thanks for taking the time to read my last post and share your views.  I appreciate it. Regarding CEO pay at the S&P 500; I don't feel it's a useful benchmark for a public policy discussion, because b...

Wikipedia image This post contains excerpts from an April 10 e-mail response to a dear friend of mine (edited for emphasis and anonymity).  “Dear Mortimer, I’ll say hello to the guys for you and I’ll be thinking about you this evening. As for politics, yes, we tend to gravitate toward sources that share our views.  However, I also read the New York Times Op-ed pages and watch MSNBC (as hard as those tasks are for me).  I suppose you watch Fox on occasion and I know you read the WSJ – so good for both of us.  We try.  The state-sponsored education you cite that we both benefited from, came largely from our parents' sweat equity – translated into tax dollars – that funded the University of Wisconsin system. True, my friend.  But, I'm not arguing for zero taxation, or zero government involvement in our lives.  When Progressives argue in favor of entitlement programs, they'll sometimes cite Social Security (under-...

H ere's to Mark Neumann , a fiscal conservative and an effective legislator with the best interests of the people in mind.  He's the kind of candidate we need to help take back our state from what Ayn Rand called, "the looters."  The problem is that the Governor's job won't be his.  Mr. Neumann's could instead challenge Russ Feingold for a Senate seat (that should have become his in 1998) and abandoning his Gubernatorial ambitions.  The reasons are... The Walker forces are too strong.  He's better funded, has majority support of the party leadership and the GOP rank and file. Mr. Walker has a very real chance of beating  Mr. Barrett - you could cast more momentum his way, by throwing your support to the Walker campaign. Neumann is the only still credible candidate with Washington experience and a chance to beat Feingold.   He lost to Mr. Feingold by a slim margin last time around.  Feingold and ot...

T his morning, while watching CNBC's Squawk Box (as I frequently do while dressing for work), I was struck by a welcome reminder that civility and reasoned political discourse still exist. Democratic Congressman Paul Kanjorski  and former Republican House Majority Leader Dick Armey  debated.  The issues and the exchanges mattered less to me than the tone and outcome of the segment.  Neither man gave much ground, but neither fell prey to stupid sniping or demagogic interruptions while the other man spoke.  Honest officials can put forth opposing views without acting like vicious morons. I don't know if it is because Mr. Armey and Mr. Kanjorski were reared in an earlier era, or if actual maturity comes to one later in life.  All I know is this: Joe Wilson rants and Keith Olbermann types do us no good.  

T oday, while viewing old e-mail on a frosty Sunday, I came upon a message I sent August 16, 2009 to Milwaukee columnist and entrepreneur, John Torinus.  Mr. Torinus has some terrific ideas about creating fiscal health and opportunity here in the Badger state.  However, I was piqued by something in his column last summer and I wrote to him: "John, While I agree with 95% of the column, the notion – apparently advanced by John Geanakoplos -- that the government ought to force “a write-down of principal on sub-prime home loans that are under water” is wrong.  I recall hearing one of your presentations on healthcare and the insurance plans of yesteryear which offered no incentive to control costs (as opposed to high deductible plans many of us now have). You likened the situation to a 10 cent Martini night that you observed as a young Marine. Such arrangements, you reminded the audience, just might lead one to be “over-served.” Well that’s precisely, the st...

I t was quite a panel assembled today on Fareed Zakaria's Sunday cable program .  Mr. Zakaria typically focuses his program on foreign affairs, but today he turned his sights to the domestic political challenges of the Obama administration. It was sort of a "Where did he go wrong and what should he do now?" theme addressed by three fine writers - Walter Isaacson , Peggy Noonan and Robert Caro .  Mr. Caro asserted, "If Obama backs away from health care , he will have lost his ideals."  On a personal note, I am a huge fan of Mr. Caro's work on LBJ.  (I wish he'd complete his book on the final years of Johnson's life soon.)  However, some might take exception with his reference today, to the "fifty million" Americans without health insurance, for two reasons.  First, many tend to use interchangeably, the notion of "care and insurance"  as Mr. Caro did, which obscures the debate.  Second, ...

Published 1.15.2010 at Examiner.com The primary reason I decided to support Scott Walker's bid for Governor last year is that he is one of the few state pols who "gets it." The "it" in this case -- is fiscal sanity. I make no claim of neutrality, so when a Web article from the state Democratic machine came into view yesterday, I was naturally skeptical. The title alone was hair-raising, "Inmates Released, Public Safety Plans Cut: "Patchwork" Walker's Latest Hypocrisy Exposed by Political Ally" The "Political Ally" referred to is Milwaukee County Sheriff, David A. Clarke Jr. -- another leader who also understands how to operate within his means.  My word, I wondered, what had County Executive Scott Walker done? The piece issued by the Democratic Party of Wisconsin, references, "...a scathing letter to Walker" from Sheriff Clarke. In the first place, the Sheriff's letter was addressed to several County sup...