Plutocracy and Cronyism Is Alive and Well in Iowa

I first saw this article about a week ago but hadn't had the time (and still don't) to discuss this but a couple of thoughts have come to mind.

A quick summation of the article:  Iowa House and Senate Democrats and Republicans agreed to a bill (SF 533) that would have increased the EITC.  This results in a lower tax for those who qualify (families making less than $45,000).  Why was it vetoed?  "Branstad (line-item) vetoed the language in part of the bill writing that it is his desire to approach tax policy in a more comprehensive and holistic manner."  Additionally vetoed out of SF 533 was language the legislature put in to prohibit bonus pay to state employees.  Why was this measure vetoed (since it was taken to protect against corruption)?  Branstad said, "it would limit the executive branch’s ability to deploy methods to attract, retain, incentivize and reward exceptional employees."
Branstand also vetoed the language of SF 517 that "prohibited the Iowa Workforce Development from closing 37 unemployment field offices across the state."  The Governor's response?  Library computers for internet access points for the unemployed.

The two most effective quotes:
-Sen. Joe Bolkcom, Democrat, "Studies show that the Earned Income Tax Credit is the most effective antipoverty program for working families.   Plus the money is spent at our small and Main Street businesses, helping to further spur our local economy. Yet the Governor continually vetoes this effort, instead preferring huge, unaffordable tax breaks for Wal-Mart and other wealthy out-of-state corporations.”
-Tim Albrecht, a Branstad spokesman, “The Governor strongly supports tax relief for all Iowans and believes the increase in the earned income tax credit can be a piece of a larger effort to reduce taxes in Iowa,”

First, let's look at the numbers.  Families that qualify for EITC earn $45,000 or less.  If the median (not the mean) income for Iowa households was $48,065 in 2009, and income levels have remained the same, if not fallen, since then, I find it hard to believe that only 250,000 families (in a state of 3,000,000) would have been affected by this veto.
Second, I do believe that Iowa's corporations take an unfair hit in higher commercial property tax and that needs to change.  I'm also okay with the Governor changing the corporate tax law because it was a platform he ran on and he was voted in.  However, slashing the tax rate in half from 12% to 6% seems completely fiscally irresponsible.  This would result in $200 million in "lost" state revenue.  Branstad insisted this money would be recouped through major increases to the state gambling tax.  (really?)  The gaming industry threatened to close casinos should this increase take place forcing many legislatures to balk at this proposal.

So, Branstad is following his campaign promises.  I get it.  I also thought that he was a Republican that supported tax cuts.  Apparently he is, but only if corporations get their break too.  Don't get me wrong...I know that both Democrats and Republicans are in the pockets of large corporations, it's just that this Governor was very insistent on cutting everyone's taxes.  It appears very disingenuous to me.  Why not approve this tax cut?  I don't understand vetoing things that your party has agreed to (the Iowa House is Republican majority).  This, while at the same time planning on cutting unemployment field offices to close only adds to the disregard he holds for the poor and working class.  The working obviously do not need the $28.5 million that the tax cut would have given them over two years.

Taking This Family on the Road.

The Specht/Shields Family is on the move.

Brooke has excepted a faculty position at Luther in Decorah, IA.  The application, interview, and offer took place over a matter of 10 days finishing on Tuesday.  Brooke needs to be in Decorah the third week of August leaving us 6 weeks.  There are many feelings flowing through our house right now; trepidation and excitement, fear and hope, and love and support.  There is much to do in a short amount of time beginning with doing one of the hardest things I've ever had to do, explain to my daughter, that we will be moving to another town where she'll make new friends.  I would like to thank Stan and Jan Berenstain for aiding in these multiple conversations.

So, this weekend is being filled with rental shopping, bank shopping, and some preschool checks.  Next week will be filled with house prep to have it ready for us to put it on the market.  Those of you that know me, know that I am an emotional guy.  I still cry when I read Amos and Boris by William Steig.  I'll be going through many of the actions and motions of someone relocating their family and life but, to paraphrase my neighbor Sara, "I'll be in denial for the next couple of weeks."

Wish us luck.

Minivans: Not just for hauling the kid.

My wife and I were both driving white minivans when we first met.  We each had acquired one through the family hand-me-down program.  Although each of us was glad to have a running vehicle to get around in, neither or us were really happy being in our mid-20s driving a "family" vehicle.  In fact, when my wife told me that she drove one on the night we met, I couldn't get out of my mouth, "No kidding?  I drive a white minivan too."  Let's just say, she thought I was making fun of her until she saw my sweet ride a couple of days later.  This being said, we had vowed together that we weren't minivan people and that we would never own another one.  Fast-forward three years into our marriage and we had added a wonderful child to our equation.  We still were set on never owning one until our lemon of a car continued to act up on us.  We decided to get rid of it.  Lucky for us, we were on the generous receiving end of my wonderful in-law's love for us (or should I not kid myself and know that it is all about the grandkid).  As we received the Dodge Caravan, we were both a little sullen knowing that we had gone back on the vow that we had made.  We were also very grateful for the gift although I don't know if we showed our appreciation enough.  Now we have a great vehicle that has morphed into my car, as I do most of the driving with my daughter (E) while Brooke is at work.

The car has been a godsend for taking E places and getting her in and out of the car with ease.  Travel was made so much easier as everything fits in the back where it did not before.  But like I said, this isn't just for hauling her around.  I have used the van to pick up lumber and other wood for projects around the house.  The best part is that I can fit a whole sheet of plywood in the back and not worry about any rain.  I have relished in this vehicle in the past couple of weeks as I have been gardening.  Thanks to the wonderful city of Iowa City, I have been able to drive out to the city landfill and pick up as much wood mulch as I want for free and as much compost for $1.00 per 200 lbs.  I meant to take a picture of my van as I have now made three trips for a total of 1,470 lbs of compost and 1,725 lbs of mulch.  This would never have happened with our old car.  One of these trips was made with E and she happily got out and helped me put compost into the back using her shovel (thanks Papa D).  All the questions she asked about the landfill, the mulch, and the compost was a great teaching experience for me.  It included learning about trash, how the landfill works, talking about bulldozers, a compost tumbler, and where the mulch and compost come from.  The greatest joy is brought E though was when we returned home and I drove onto the yard and into the back to unload our contents into the flower bed.  "Whatcha' doing de de daddy," she asked.  "Having fun E!  Are you?"  "Yeah.  I love you de de."

Class Warfare? What do you think?

I wrote this a week ago.  It was the true reason as to why I thought about starting a blog.  Read it if you'd like; but, if you feel my political views or fiscal views  would bother you, I understand.  I wrote this on word and I just pasted it.  If the links don't work, I'll fix that tonight.  If I were to expand, this would also entail the newest war we are in (yes, it is a war) for the security of economic resources.

Last night I came across an article on MSN Money titled, “Down and Out on $250,000 a Year?”  The article looks at the number given by Obama and others given as to what it means to be rich in America.  As only 2.9% of American couples earn that much money or more, I certainly would agree this is a nice threshold of what it would mean to be rich.  The analysis, given by The Financial Times, takes 8 cities across the country, applies a budget for a family of four and

            “Assumes that this hypothetical couple -- let's call them Mr. and Mrs. Jones -- both have professional positions at their companies. They take advantage of all tax benefits available to them, such as pretax contributions to 401k plans and flexible spending accounts for medical care, childcare and transportation. They have no credit card debt, but Mr. Jones racked up $40,208 in student loan debt in undergraduate and graduate school, and Mrs. Jones borrowed $22,650 to get her undergraduate degree (both amounts are equal to the national averages for their levels of education). They also have a car loan on one of two cars, and a mortgage for 80% of the value of a typical home in their communities for a family of four, which includes one toddler and one school-age child.”

The final conclusion of the article is that $250,000 isn’t really rich because the hypothetical family in 7 of the 8 test cities ends up being over budget at the end of the year.

My first question is how are families that make less than $250,000 expected to make changes in their budgets/sacrifices when it comes to how their money is used?” These hypothetical families get to use $19,909 on food and staples for the year and that doesn’t include $2,400 for eating out (ridiculous amounts of money to spend on this by the way!). Where is the analysis of the family of four that makes $80,000?  If a family that makes $250,000 can’t make it, how can any family that makes less?  A closer look finds that this family is able to afford things many Americans would hope to have money to spend on (i.e. college fund AND retirement).

What is the purpose of this article?  To make the 97.1% of Americans have sympathy or even guilt for those that make more than us?  As the article finishes…

            “The bottom line: For folks like the Joneses -- who live in high-tax, high-cost areas, who save for retirement and college, who pay for child care to enable them to earn two incomes and who pay higher prices for housing in top school districts -- $250,000 does not a rich family make.”

What malarkey.  The rich are able to save for retirement and college, are able to pay for childcare, and are able to pay for housing in the top school districts.  They can afford $5,000 to have that house cleaned, spend $2,400 for the year eating out (not including the $5,000 lunches at work or the $1,250 takeout meals), and $4,000 on a family vacation. 

Imagine my surprise when I read an article that said, “4 out of 10 Millionaires say They Don’t Feel Rich.”  As Fidelity observes, “the wealthiest 5 percent of Americans hold more than 55 percent of the nation's wealth.”  This is in conjunction with the fact that globally, 1,210 people (Billionaires) hold the combined wealth of $4.5 TRILLION (more than the GDP of Germany).  America’s wealthiest dominate this group as they make up one-third of the billionaires.  Why does this matter?  “Because these moguls have the power to shape our world.”  Forbes gives a few philanthropic uses of this money.  Don’t you think that there are also self-serving uses of this money?  Millionaires don’t feel rich, so don’t they want more?

This brings me to what I have been seeing take place in OUR state, OUR region, and OUR country: Class Warfare.  Whether we like to talk about it or not, that is exactly what goes on when there are attacks on the services and entitlements that Americans not just use, but depend on.  Programs that begin at the local level such as the Free/Reduced Lunch for kids in PK-12.  In Iowa, there were 189,645 kids (38.2% of PK-12 Enrollment) that were eligible for the program.  That means for a family of 4 to be eligible for receiving assistance they would have to make no more than $40,793 for the year.  If $40,000 a year isn't enough to make sure your kids have a healthy breakfast or lunch, what happens to those that make less?

Although there isn’t a politician that would speak it, class warfare has been going on since 1982.  From 1936 to 1981, the wealthy elite (I define as the top bracket in Federal Tax breaks), never had a top marginal tax rate less than 70%.  When Ronald Reagan left office in 1988, that rate was at 28%.  Since his philosophy tax philosophy has prevailed, as the top rate hasn’t gone above 39.6%, why not ask whether or not Reagan’s tax policies delivered on the promised results.  The rhetoric continues to state, “Lower taxes spur faster economic growth and increased prosperity.”  Analyzing the period in which this tax philosophy has reigned supreme, there is a positive correlation between the top marginal tax rate and the annual growth in real GDP.  This means that when there has been a higher top marginal tax rate, real economic growth has been faster, not slower.  Conversely, lower top marginal tax rates have coincided with less economic growth. 

If lower rates (spouted as a means to create jobs) mean less economic growth (jobs with less growth?), it also means less in government revenue.  This means less in infrastructure, public health, scientific research, education, and alleviating poverty.  The people that benefit most from these are the 97.1% of Americans that don’t make $250,000 (even though all Americans benefit). The purpose of taxing the extraordinarily rich is to prevent an aristocracy from developing and to maintain a true democracy, a feat Aristotle recognized as impossible in the face of great income inequalities.  What we have seen over the past 30 years is in fact greater inequality.  This disparity is easily shown in the wealth ownership in this country. In 1974, the bottom 90 percent held 80.1 percent of the wealth.  In 2007, the bottom 90 percent held 34.6 percent of the wealth.  The winners are taking all and leaving the rest of us behind.  WE are not getting ahead.

So, who stands up for the lower and middle classes?  It was unions and collective bargaining agreements.  They balance the power of corporations and governments.  Even the aforementioned Ronald Reagan believed

            “Unions represent some of the freest institutions in this land. There are few finer examples of participatory democracy to be found anywhere. Too often, discussion about the labor movement concentrates on disputes, corruption, and strikes. But while these things are headlines, there are thousands of good  agreements reached and put into practice every year without a hitch.”

Attacks on unions are taking place all over the country.  The private unions have been busted already, leaving a promise to workers to the wayside.  Many of those private sector pension plans have been dumped on the Federal Pension Guaranty Corporation, which pays pennies to the dollar on what pensioners previously received.  Public pension plans are being targeted now because governments are said to be broke.  All we hear is how spoiled, bloated public workers are and the big fat pensions they have.  We are told that teachers to sacrifice more; Pay cuts, benefits cut, cut, cut, cut.  Since we are down, we have to drag them down with us.  The lower and middle class is fighting amongst itself instead of organizing together like it once did 70-80 years ago.  That period bore the fruit of democracy.  People who were in nearly the exact position we find ourselves today - except that they had no safety net at all - organized, agitated for and won a federal jobs program, a mortgage foreclosure moratorium, unemployment insurance, minimum wage and Social Security, among many other benefits they fought for and won.

We have been duped by the Savings and Loan rip-off following deregulation by Reagan (cost: over $500 billion); the stock market bubble of the Clinton-Bush years (401(k)s and IRAs wiped out); corporate manufacturing's flight from about 1975 on (and the associated loss of middle-class jobs and status); and the most recent fraud visited upon us, the fraudulent mortgage-backed securities bubble made possible by Clinton administration deregulation (its related losses still unfolding), all the while there were massive bailouts at our expense and not a single person going to jail for the fraud that was perpetrated on the American people.

The ironic thing is that many of the struggles that are taking place against OUR class (I’m talking to YOU 97.1% income, lower 90% wealth) will only be solved with discussion and democracy in our physical neighborhoods and locals.  That is were common struggles take place and where common support should be.  Turn off the T.V. and talk with your neighbors.  Educate yourself on the issues.  I admit, I have failed in this regard.  But this isn’t some nice New Year’s resolution that if I fail to follow through on it is no big deal.  This is what will define how I will live out my life and my daughter will live hers.  Will OUR government be one run by us or by the aristocracy in this country? 

"There's class warfare, all right, but it's my class, the rich class, that's making war, and we're winning." -Warren Buffett to The New York Times, November 26, 2006

When I was graduating high school, a teacher I respected told my grandfather that he didn’t believe I was destined for great things but that I would be an outstanding citizen.  At the time, I was very offended by those remarks.  As I have grown and matured, now I feel proud of what he said and can only hope to be so. We need to demand that all of our rights be taken seriously.

Latest Trip to the Farm

So, this past weekend I went up to my dad's farm to do chores and work while he traveled with my step-mother went to Chicago for a bridal shower.  Even though I am just an hour away, I have learned that I am much more astute and attentive (not fatigued or run-down) if I spend the night instead of driving back and forth.  As one might expect when being "home," I am privy to any of the food or drink in the house.  Having eaten many times in Monticello, I have always been amazed by the quality and quantity of food presented by my stepmother.  She is an amazing cook, baker, and hostess and my dad is no slouch either.  So needless to say, there is a great time to be had a the breakfast, lunch, or dinner table at the Specht residence in Monticello.  However, when they are out of town and I go up to take care of the farm, I have frequently found myself needing to run into Anamosa or Monticello for lunch and dinner staples (something none of my siblings would ever imagine I'm sure). 

I have learned from this and when I go, I know bring along enough food to last through the meals and snacks I'll be there for.  This past weekend I decided to stop by the grocery store for some popcorn to munch on while watching some NCAA basketball (new format stinks for those without cable channels).  I was looking for some kettle corn but my "bachelor" portion of my mind was drawn to the box of Orville Redenbacher Caramel.  Ooohhh, this was the same popcorn that my wife and I would eat in our early days together, days when I weighed 75-80 lbs more.  Was there really any other box of popcorn that I was going to get?

So, I fed the calves, cows, cats, ewes, and rams.  I did my best George W. Bush interpretation clearing brush, tearing down fence, moving the church's parking pylons, and hauling manure.  After working Saturday, I cleaned up and made myself some caramel popcorn.  The first couple of handfuls were fantastic.  Endorphins flooded my brain and made me at ease.  The next couple of handfuls were showing the true colors:  Poorly flavored, coating my teeth, bothering my stomach, and creating groups of popcorn and old maids together.  Furthering my distaste for old maids (ba-dum ching).  Did I stop eating the popcorn?  Of course not.  I was on my own.  The man of my own destiny.  If I could have fit my head into the bowl, I would have licked it clean.  A great night after a wonderful day of work.  On Sunday, chores and a couple more things to do outside.  I have forgotten how much I love working out in the rain, even when it was "rain that flew in sideways."  Nothing, nothing, beats being outside.

The food we eat.

I saw this last week but was reminded of it Tuesday and yesterday as I was making dinner.  Not so much the Guantanamo clip but the homemade salad dressing being poured out for the liberal homies at the 2:50 mark.

The Daily Show With Jon Stewart	Mon - Thurs 11p / 10c
MoveOn.Aww - Trials Resume for Guantanamo Detainees
www.thedailyshow.com
Daily Show Full Episodes Political Humor & Satire Blog The Daily Show on Facebook

That was me on Tuesday when I made some raspberry walnut marinade, converted into a glaze later, for a salmon fillet that I grilled for supper.  Sometimes I wonder if I could be any more stereotypical liberal.  Anyway, it was a great meal and a fantastic way for E to learn about her food and learn to cook through helping.  We had a discussion about where each thing we were going to eat came from.  This is important to me more because growing up on the farm I knew exactly where our pork came from and how it got to be on our plate.  Understanding that food isn't just in a plastic case/bag or a cardboard box.

She decided on the salmon at the grocery store, helped skewer the vegetables, get the corn prepped for the grill (husking and lathering in mayo and cheese), added the ingredients for the marinade, and is the best "tester" in the house.  Brooke and I think that she will be a fantastic cook because she is always testing the ingredients at they go into something and the end result.  Her favorite thing to test is sugar, usually without my knowing.  I frequently wonder if she is a wise sage that is well aware of the Indian Proverb: Stolen sugar is the sweetest.

That being said, on Tuesday we had grilled salmon with a raspberry walnut glaze, grilled corn with Parmigiano, and gilled zucchini, squash, and baby portobellos.  The glaze ended up being a little sweeter than I had hoped; but, when eaten with the salmon, the vinegar from the marinade really came out and gave it a nice tartness or dare I say made it piquant.
Last night we had tofu sliders with peanut-soy slaw on top.  Could we be any more liberal/hippie?

 

Here is the Tofu Sliders

(note: we were out of slider buns but had a plethora of brat buns)

Another way of saying...

Here we go.  So this is my first unnecessary post on yet another unnecessary site that allows me to express my thoughts on things most people don't.  And they don't because they aren't me.

While I never thought I'd be creating my own blog, I have been spurred by the desire to share my own experiences as a man that is the primary caregiver, the homemaker, and someone that is having a civic fire beginning to burn.   I have been challenged in so many new ways each and every day.  These challenges include, but are not limited to, helping my daughter on her journey through childhood, standing side by side with my wife to confront each day, defining what it is I stand for and believe in, getting everyone fed and dressed in the morning, and finding new ways to enjoy myself.

Anyway, with my blogging I am just looking at sharing my thoughts of family, farming, food, politics, books, movies (I wish), old times, and new.  Hope you'll find something of interest now and then. Welcome to my little part of the blogosphere.