Maddente.com raison d'être

Raison d'être -- is French for "reason for existence" -- which is a heady concept.  I'll define this blog's raison d'être for my five six readers, with this post.  Many of my posts center on fiscal responsibility. 

Fotosearch Image

So when I see a column I agree with as I did today in WSJ by Steven Malanga ("State Politicians and the Public Pension Cookie Jar") -- I share it and talk about it.  I hope in a small way, I'll add attention to the generational burden-shifting and recklessness taking place (and it feels good to get gripes out of my system and into a post).

Mr. Malanga focuses on at least one part of a multi-faceted national spending problem -- defined benefit programs for public employees -- better known as public pensions.  I didn't understand how costly they are until some six years ago, when a retired pediatric dentist of all people, began to educate me.

I also have misgivings about pension plans in the private sector, but shareholders of those pension-granting organizations choose where to invest their money.  Put differently, if a majority of company shareholders wish to tolerate expensive employee retirement and health care plans -- that's their business.  Investors can and do vote with their feet.  But taxpayers can't sell their shares, or wage a proxy fight. So, public pension reform is my topic du jour (OK, that's it for the French phrases -- I promise). 

Fortunately, voters are beginning to wake up and support leaders like Governor Scott Walker and the fiscal reforms they sponsor to curb these budget busters in the public domain.

Someone asked me why I haven't been posting much lately.  The answer is I've been busy working and like most working Americans -- trying to add to my defined contribution plan.
-------------------------------------------------------------------------------------------------


Governor Scott Walker / Wikipedia Image

Finally, I'll share another column also found in today's WSJ  by Peggy Noonan about Governor Scott Walker's resounding win this week, called "What's Changed After Wisconsin". 

Mr. Walker, whom I hope you'll remember -- not recall -- is the first recipient of the Maddente.com MVP Award for public adherence to fiscal responsibility.

Mr. Mark Neumann's time for a new goal

Here'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 other stalwarts in his party, are more vulnerable today.  

So, Mr. Neumann, be a pragmatist and do what's best for us.  You will not win the September primary anyway.  There is still time to displace Mr. Feingold, but you must change horses....soon.

Milwaukee's fiscal woes won't be solved by Dems' press releases

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 supervisors and Mr. Walker, not solely to Mr. Walker, as the article implies.

Secondly, when the sum and substance of this piece didn't square with my own understanding of Mr. Walker's views, I looked to his Communications Director for Mr. Walker's official positions, which were described thus:

"The budget Scott presented for 2010 DID NOT include furlough days for Sheriff's deputies."

An amendment passed by the members of the County Board applied floating furlough days to everyone and it could not be line-item vetoed. The County Board are the ones that put this into Scott's budget.  

Now, the Sheriff has a series of actions he wants to take as an alternative to furlough days for deputies. Scott supports an alternative and has been working with his office for past few weeks.

Scott Walker WILL NOT and DOES NOT support the early release of inmates as part of an alternative plan. In fact, he would veto such a plan if approved by the County Board.

Instead, Scott will continue to work with the Sheriff's office to avoid the release of inmates - as well as furlough days"

Finally, I contacted Sheriff Clarke's office seeking comment on the "scathing" letter as described in the article in question, and the Sheriff responded through a representative that Sheriff Clarke,

“...is not going to politicize his budget and these conversations should definitely take place between himself, the County Board and the County Executive.”

Perhaps someone forgot to tell the Dems.

Milwaukee County furloughs and remembering Reagan

The Milwaukee Journal Sentinel reports today that a judge has allowed the furloughs (days off without pay) of some public union workers to commence in accordance with Milwaukee County Executive Scott Walker's order -- starting Monday.

It's unfortunate, that instead of supporting his fiscal responsibility, the County Board continues to jawbone the County Executive and the unions, of course, continue to file lawsuits. All this for a measly five hours off a week.

I have never understood why organized labor behaves as though pay (and benefits most of us dream of) ought to be guaranteed. I have not read their contract, but I cannot fathom any responsible authority agreeing on behalf of county taxpayers to anything more than the rest of us live with AKA an "at will" employment arrangement. The concept is quite simple. Either party (employer or employee) can sever their relationship with the other, for any reason, at any time.

This morning I recalled former President Ronald Reagan's decision to fire striking air traffic controllers in 1981. The union organization, known as PATCO, sought to express its grievances with a strike and jeopardize the safety of American travelers. After the President warned PATCO members that if they did not show up for work they would be fired, they tested him and he kept his word.

It was something of a milestone. Organized labor has continued its decline since. Baseless threats, lawsuits and strikes are not part of an effective career strategy.

Now flash forward to modern day Milwaukee County and consider its fiscal challenges. We see all the labor vitriol we had on a national level back in 1981. . . over five hours a week.

Somehow I think that if Mr. Walker's furlough order was twice as stringent, the sun would still come up the next day.  I commend Governor Doyle's plan for limited furloughs and wish only that he and the Democrat-controlled legislature, went further to reduce state spending and lower taxes. 

The individual and our economic crisis

If you had never met Milwaukee County Executive Scott Walker, you'd be hard pressed to spot him in a crowded room.  Mr. Walker is an average-looking man, with plain features and an unassuming demeanor. Even his name is common. He looks like millions of other guys. I made his acquaintance last year after he introduced himself before a debate with his election opponent, Ms. Lena Taylor.


Scott Walker
Wikipedia image

Yes, a common guy he is, but don't be fooled -- Mr. Walker packs a wallop and his piece in this morning's Wall Street Journal, "Why I'm Not Lining Up for Stimulus Handouts" defines his fiscal moorings and shows why he has drawn acclaim among conservatives and scorn from progressives.

Mr. Walker mentioned what other politicians know -- but often fail to highlight -- which is that our current fiscal calamities, were abetted by individuals -- not just banks, not just regulators, not just mortgage brokers, not just government. Those were all culpable parties to be sure, but what Walker reminds us today, is that our current turmoil began,

"...when millions of people were allowed (or encouraged) to spend borrowed money on homes they couldn't afford and were later forced into foreclosure." 

Amen.  I've been dismayed by the lack of discussion about individual responsibility and reckless borrowing.  In due course, we'll see more acrimony coming from the public, or at least the part of it that still believes in living within one's means.

There are two arguments currently offered to defend bailouts for homeowners who bought too much house, or who should have remained renters until their income and assets warranted otherwise, or who foolishly sucked all the equity out of their homes to buy stuff they couldn't afford. Here are those arguments:

Argument #1) "This is no time to teach people a lesson."

Who said anything about teaching? This isn't about vengeance either. Those who advocate for mortgage bailouts are appropriating money from responsible Americans to pay for the mistakes of others. Bailouts simply perpetuate that pattern.

The only way to help a heroin addict is to take away his opiate (in this case easy money), then encourage him or her to live healthfully. I see no reason why the responsible many should pay the freight of the irresponsible few, simply because the irresponsible few no longer meet their obligations. And in the cases I reference, we're discussing a self-induced foreclosure on a house, not a death sentence visited upon the falsely accused.

Many foreclosure so-called "victims" are personally responsible for their circumstances. There was too much predatory borrowing going on that is now being characterized, as predatory lending.  Yes, I know there were exceptions, people who were truly duped, lost their jobs, became seriously ill, or were improperly foreclosed upon -- but do you think that those cases constitute the majority of borrowers who suffered a foreclosure (I ask rhetorically)?  

Argument #2) "If we don't have mortgage bailouts to stem foreclosures, housing prices will continue to fall precipitously, including yours, so you should support this plan."

Markets work if we let them work. If housing prices continue to fall, they'll only be receding to a current level of value. The continuing collapse of our financial system and our way of life, which appears to be careening toward Euro-Socialism, is as disturbing as the trajectory of home values.

However, if we allow the eggs to break and take our necessary economic pain, the values of our homes could appreciate again one day. Things get better after the hangover. The reality that too few wish to acknowledge is this: we can't have a painless hangover.

Although the thrust of Mr. Walker's piece today is not about individual responsibility, it's about government's financial stewardship -- he gets it. We cannot, individually, or as a society, continue to kick the debt can down the road. It's immoral and stupid.

Our current state Governor, unfortunately, wants to leverage our future, reward his supporters like public teachers' unions and expand government programs we don't need and can ill-afford.  It's widely speculated that Mr. Walker will run for Governor in the next election. If he does run, I intend to support him. I hope like-minded voters in this state will do the same, unless a stronger candidate emerges.

Right now, I don't see a stronger one.