Tuesday, May 27, 2014

Rant 2 March 8, 2008


“Abandon hope, all ye who enter here”; I think Dante got that right.  The worst thing is not whatever we are experiencing at the time, however bad that may be, but the loss of any belief or illusion that things can ever be better.  I had some firsthand experience with a loss of hope just before I first got sober but that’s another story.  Mr. Alighieri was talking about the entrance to Hell but he could just as well have been talking about our  US election process.  Or at least that is what I thought when I wrote to you last.

Last night I thought McCain had practically given the November election to the Democrats in his speech after locking up the Republican nomination when he apparently went out of his way to alienate union members (12.1% of the workforce) and Americans without health insurance (16+% of population).  But then Clinton won  Ohio and  Texas which creates a situation where it does not look like the Democratic nominee can be determined until the Party Convention, scheduled for late August in  Denver .  This means that Obama and Clinton will be cutting each other to pieces for the next few months and doing damage to either of their chances for success in the general election.  Bush has the lowest approval rating of any President in recent memory and McCain seems to be embracing him.  Once again, the Democrats appear to have found a way not to win an unloseable election.  One would think that the national committee would be tired of snatching defeat from the jaws of victory, but apparently not.

After I sent my last, somewhat bleak, note out I received some very interesting replies.  I should have known my friends better; after all, I selected them.  Almost all of you had something positive to say and something hopeful to offer.  Perhaps the strongest was from my friend John Cahill, (very American even with the most Irish of names; (although the quick anger genes seem to have come down to him unvitiated). 

John is somewhat of an inspirational person himself.  After being caught up in the international telecom meltdown that affected many of us, he decided to use the opportunity to pursue a dream and entered a chef’s academy.  After several almost successful near-amputations, he decided he really did not want to be a Yakuza wannabe; so he ended up doing volunteer work assisting wounded soldiers returning from Iraq with their rehabilitation at the military’s  Walter  Reed  Hospital .  I remember his relating to me his wonder at the positive attitudes of the patients and their abiding belief in the honour that comes with defending their country.  He also shared his frustration with the seemingly pointless policies of the political leadership.  I could not help but think that any country that could continue to raise young people who were willing to voluntarily place themselves in harms way and possibly die in the defense of its beliefs and preserve its way of life must be doing something right.  No matter how wrongheaded the policy may be; the qualities of the men and women who are willing to serve in our Armed Forces are deserving of admiration and respect.  Not all is well with America’s military and they have been stressed by massive call-ups of reserve units, extended tours and multiple deployments without mentioning questions about policy goals and mission definition or lack of public support for the war in general.  Suicide rates are twice the historic levels and mental health problems have dramatically increased, particularly among combat veterans.  I do not suppose that most of the world views America ’s military with admiration but I continue to marvel at the level of dedication and motivation its members, and particularly enlisted personnel, consistently demonstrate.  John’s volunteer experiences led him to return to school and he has subsequently launched a successful second career in health services.  Just about as far from telecom sales as you can get.  That took some drive and dedication as well.

I have come full circle in terms of pride in county.  Most of my adult life has been spent in some form of travel internationally and I have gone from feeling like the ugly American in the 60’s to feeling pretty good about America ’s economic resurgence and the ending of the Cold War to once again feeling somewhat ashamed of what we have done and are doing in the world.  Obama must have been reading my mail when he spoke to his supporter after  Clinton’s victory speech in  Ohio and before the results in  Texas were known.  He also spoke to me directly when he said his campaign had brought some “life-long skeptics” back into the political process.  Following is a link to that speech.  For some reason you cannot click on it directly but have to paste it into the address bar.


It has been a long time since I responded positively to a politician.  I hope Obama can in fact beat the  Clinton political machine and offer us a real choice in November. Earlier in the campaign, I had dismissed him as having no chance of election.  This was in part due to prejudice of the electorate and in part because of his lack of experience.  These are still concerns, but as John Cahill pointed out, even if he failed at every last thing he tried to accomplish as President, how much worse could the results be than what we have already experienced under Bush?  Is it not better to try and fail in the pursuit of noble ends than to settle for ignoble ones?  I guess time will tell, but I think I do know that now is not the time to stand still.  I think inaction will end up with disastrous results.  It looks to me like many of my fellow countrymen feel the same way and are looking for a way to change our course and direction.

My friend, Graeme Lynch, says that what we are seeing happening to the US is simply a repeat of an historical cycle and that our current distress is the result of the Rise and Fall of the American Empire.  There is undoubtedly some truth in this but I heard it once before in the late 70’s.  Then we were supposed to have been eclipsed by the Japanese.   But the US was able to reassert economic leadership through massively increased productivity.  At that time the Japanese held large reserves of US currency and the pundits proclaimed that America would end up being bought by its own money.  Graeme points out that the Chinese and the Arabs are now holding trillions of US dollars and may try to do the same thing.  But it did not work out so well for our friends in Japan and I do not think it will be so easy this time either. However it is foolish for America to ignore the risk that the weakness of the dollar has caused.  Graeme also points out the obvious fact that US dependence of Middle East oil is the both the biggest problem and the biggest opportunity we confront internationally.  Rather than trying to buy the USA , the Chinese, with their own shortage of domestic oil would be better off to use their 1.5 Trillion to capture global leadership in alternative energy technology.  They could use the openness of Universities in the West to short circuit the research and development that would be necessary to accomplish this.  Graeme correctly says Bush could have gone down as one of the greatest Presidents ever if he had truly embraced the development of alternative energy sources and technologies and started us on the road to independence from foreign oil.  He didn’t and isn’t.  That opportunity is still there and could be the underpinning of a new economic resurgence of America.  Long-term this would allow us to thumb our noses at the oil-rich nations that are currently encouraging Islamic extremism.  Another friend, Derek Nelson sent me a clip from the UK commenting on Islamic fundamentalists and as that clip said; “The Western democracies could simply allow the Middle East to revert to the eighth century and good riddance”.  There is more to be said about this but that is the subject of another rant.

I think the last US surge in economic wealth creation came about in large measure because of US leadership in the development of computer technology which allowed us to harvest large productivity gains through information use.  Our next resurgence will probably not have as clear a technological base but I have observed that wealth creation is almost perfectly correlated with a society’s degree of individual liberty.  Now that  Hong Kong is on the way out, the  US is probably the freest economic society in the world both in terms of individual liberty and freedom from regulation.  The power of hundreds of million individual daily decisions on how to improve efficiency and quality will always produce the best economic performance.  I think it is way too early to count the  US out in terms of leadership in future wealth creation.  However, like all things a strength taken to the extreme becomes a weakness and that weakness for the  US is the health care sector.  Here, not only regulation, but direct intervention is required in my view.

I think McCain has painted himself into a corner on this issue by claiming that the US has the best health care in the world and government should simply not interfere with that reality.  I think this is just clearly wrong.  It is undoubtedly clear that the best health care in the world is available in the US but it equally clear that it is untrue that we have the best health care system in the world.  All you have to do is look at the comparative statistics for longevity and disease among the developed nations and it is clear the US is not leading.  Our society lags far behind those of Europe in terms of the overall health of the citizenry.  This is simply a matter of cost.  Excellence in health care in the US is expensive.  And is getting worse at a rate far in excess of inflation.  In the long run, the US economy cannot afford the health care system it has now.  Already our percentage of GNP dedicated to health care is the highest in the world and the gaps appear to be widening rather than shrinking.  A recent new article said; “Health care reform will be the primary issue in the 2008 presidential election predicts former Wisconsin governor Tommy Thompson.  Thompson, who also is the former secretary of the United States Health and Human Services Department, spoke at UW-Stout’s Harvey Hall Friday morning about health care reform and the role stem cell research might play.  “Health care in America is at a serious crisis. … We have seven years to change health care to save it,” Thompson said. “Medicare will go broke by 2013.”  Over the past few decades, Congress has been taking money from Medicare to spend in other areas, he reported.  The United States spends $2 trillion per year on health care, which is 16 percent of the gross national product (GNP). By contrast, Canada spends 9 percent of GNP and Japan spends 8 percent. By 2013, the United States is expected to pay $4 trillion a year for health care, or 21 percent of the GNP.”  This simply cannot continue without ruinous results to the economy.
The medical and legal professions bare part of the blame, but the biggest culprits are the insurance companies.  Private health care insurers are a cancer feeding on the American economy.  I think it is inevitable that the US will have a single payer system similar to those in the rest of the developed world before too long but the transition will be difficulty due to the lobbing power of the entrenched interests.
US business leaders already know that health care costs must be controlled.  You simply have to look at what has happened to the US automakers to know how unrestricted health care costs can destroy competitiveness.  It is unclear to me why more corporate leaders are not supporting reform.  It may be that it is simple selfish interest.  Since the wealthy already have the best health care in the world they may not want to run the risk that their individual standard of health care might be reduced to the level of what is available to every American.  In any case the current economic difficulties should force corporate leaders to come to grip with the reality of the disadvantages of the current system and start pressing for reform.  There are other problems that could undermine a US surge in productivity including a low internal saving rate, which could lead to lack of investment dollars.  However, our previous experience is that if the engine is running well, the fuel will be found.
Overall I am much more upbeat than I was when I wrote the last note.  I think there are forces for change working in the society and that the goals which they seek are the goals we should be pursuing.
Graeme says that it might be a good thing if concerns at home cause the US to have less time for overseas adventures (meddling). I think he is right.  The time has come for us to spend our efforts at improving our own society instead of arrogantly telling others what is wrong with theirs.  We will have to see if our election process will allow that change to be accomplished through the ballot box.


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