August 2011 archive

Cross posted from The Stars Hollow Gazette

With states and cities struggling to balance their budgets with lay offs of workers, cuts to benefits and wages, as well as, reduction of aid to schools, hospitals, clinics, and other agencies, states government desperate for revenue are looking to on-line gambling but may run up against the obstacle of the Justice Department:

It’s an idea gaining currency around the country: virtual gambling as part of the antidote to local budget woes. The District of Columbia is the first to legalize it, while Iowa is studying it, and bills are pending in places like California and Massachusetts.

But the states may run into trouble with the Justice Department, which has been cracking down on all forms of Internet gambling. And their efforts have given rise to critics who say legalized online gambling will promote addictive wagering and lead to personal debt troubles.

The states say they will put safeguards in place to deal with the potential social ills. And they say they need the money from online play, which will supplement the taxes they already receive from gambling at horse tracks, poker houses and brick-and-mortar casinos.

“States had looked at this haphazardly and not very energetically until the Great Recession hit, but now they’re desperate for money,” said I. Nelson Rose, a professor at Whittier Law School, where he specializes in gambling issues.

When it comes to taxing gambling, he said, “the thing they have left is the Internet.”

Meanwhile the Obama administration is mulling over whether to take a tougher approach to economic issues:

Mr. Obama’s senior adviser, David Plouffe, and his chief of staff, William M. Daley, want him to maintain a pragmatic strategy of appealing to independent voters by advocating ideas that can pass Congress, even if they may not have much economic impact. These include free trade agreements and improved patent protections for inventors.

But others, including Gene Sperling, Mr. Obama’s chief economic adviser, say public anger over the debt ceiling debate has weakened Republicans and created an opening for bigger ideas like tax incentives for businesses that hire more workers, according to Congressional Democrats who share that view. Democrats are also pushing the White House to help homeowners facing foreclosure.

Even if the ideas cannot pass Congress, they say, the president would gain a campaign issue by pushing for them.

“The president’s team puts a premium on being above the partisan fray, which is usually the right strategy,” said Senator Charles E. Schumer of New York, the No. 3 Democrat in the Senate. “But on this issue, when he knows what the right thing to do is, and when a rather small group on one side is blocking any progress, you have to be willing to call that group out if you want to get anything done.”

While Obama drags his feet staying with his bipartisan tick that has made matters worse, the housing market continues to sink under the weight of 4.6 million homes with delinquent mortgages and real estate owned sitting empty and the jobs market stagnates with the U3 at 9.1% mostly because 193,000 people dropped out of the labor force and weak jobs growth. There were only 117,000 jobs created in July not nearly enough to even keep up with population growth.

Calculated Risk has two great graphs that illustrate the two problems:

Click in images to enlarge

It well past time for Obama and the Democrats to stop whining about the obstructive Congress. So whatsoever the White House puts forth won’t get passed, at least make it a fight you can take to the street to say you at least tried to do something. Pragmatic won’t get it done, it hasn’t for the last three years.

If you do not get Current TV you can watch Keith here:

It’s been a rather tough week for capitalists. With people waking up from the illusion of money and riots erupting in otherwise reserved England, I almost feel a little sorry for the advocates of Milton Friedman. Almost.

As you scrape together your last dollars to exchange for gold and throw another bucket of water on your burning London flat, have you considered abandoning this system? There is a choice, you know. We choose to have this system and all the pain that comes with it. Not offering opposition to a bad system is making a choice to continue with the dysfunction.

What’s that? You didn’t know you had choices? No one has explained to you the alternatives? Well, if you don’t feel obligated to ride this sinking ship to the bottom of the ocean, come along with us as we start talking solutions.

In Part I of this three part series, we discussed the history of a little known cooperative venture called Mondragon. This company went from a twelve-man paraffin stove manufacturing plant to a conglomerate that holds Wal-mart at bay in miniscule country of Basque, and employs 130,000 people. The cooperative has a remarkable 80% success rate in business ventures, far outstripping the typical success rate of 20% (less in this market). It has consistently helped the Basque people strengthen their communities with education, health care, housing and a robust social safety net.  It creates jobs where none existed before, stabilizing their economy while nearby Spain and Portugal flounder.

How could this one company achieve such miraculous results? Well, it may actually be a divine intervention–through a Jesuit priest named Don Jose. In this segment, I delve deeper into Don Jose’s unique genius in devising the Mondragon system.

Cross posted from The Stars Hollow Gazette

I am totally bored with the news today. Like Jeralyn at TalkLeft there is little being reported except about Republicans and, like her they are just not interesting to me. They’re all clowns, felons or religious zealots. Jeralyn lucked out going to her local farmers’ market, but due to the weather here I couldn’t go for a walk on the beach. I can’t even get off the street because the intersection is under about 4 feet of water, the choice is row boat or SCUBA today.. So I surfed the net this afternoon for entertainment.

When I was back in college and in between jobs, I waited tables and tended bar. Not bad money back in ’72 – ’73, it helped pay the bills. One of the things I was very attentive about were garnishes for drinks, like lemon twists, maraschino cherries (UGH!) and olives. I’m rather observant about what goes on behind the bar and rather particular about my drinks, vodka martinis being my favorite, so when Rachel Maddow did a segment on her show about drink garnishes, I chuckled. Her rant on garnishes started because of red bees in Brooklyn, NY that had been getting into the Red Dye #40 laced cherry juice at the factory where the cherries are made. Her objections extended to olives which have “conceivably been lying out festering in their own juices in a warm room all night, with fingers on them.” Well, while the alcohol kills a lot of germs, I usually peek behind the bar to see how the garnishes are kept. The better places keep them in trays over ice with little tongs or picks. Her take on lemon twists was pretty clear, it’s there to add some flavor, “It has a job to do, and that job is not to be eaten!”. The moral of her lecture was “Don’t Eat the Garnish” and hold the maraschino cherries.

We gotta grow some jobs, and that’s a fact, and we probably aren’t going to be able to do it with big ol’ jobs programs funded by the Federal Government, what with today’s politics and all, and that means if this Administration wants to stay in the jobs game they’re going to have to find some smaller and more creative ways to do it.

They are also going to have to come up with ideas that are pretty much “bulletproof”, meaning that they are so hard to object to that even Allen West and Louie Gohmert will not want to be on record saying “no no no!”; alternatively, solutions that work around the legislative process entirely could represent the other form of “bulletproof-ery”.

Well, I have one of those “maybe bulletproof” ideas for you today, and it has to do with how “Made in USA” the things are that our Government buys.

Muse in the Morning

Time for a break from poetry…in order to create some art.

Art Glass 29