Archive for May, 2016

How The West Got Rich

Monday, May 23rd, 2016

How The West Got Rich

May 23, 2016

There was a fascinating article in last Saturday’s Wall Street Journal. I want to point it out because it will be at the heart of our upcoming 2016 presidential election. We hear the talking heads speaking about gender-less bathrooms, free stuff for everyone, income disparity, redistribution of income, taxes, the benefits of socialism, bullying and lots of other issues.

The number one issue in survey after survey is the economy and this is what this article is all about. Look and read some of the facts.

Two centuries ago, the average world income per human (in present-day prices) was about $3 a day. It had been so since we lived in caves. Now it is $33 a day—which is Brazil’s current level and the level of the U.S. in 1940. Over the past 200 years, the average real income per person—including even such present-day tragedies as Chad and North Korea—has grown by a factor of 10. It is stunning. In countries that adopted trade and economic betterment wholeheartedly, like Japan, Sweden and the U.S., it is more like a factor of 30—even more stunning.

Now we have people calling for a change to our system in order to make it more like Cuba, Venezuela and a long list of countries run by top down federal bureaucracies.

Here is the explanation of how our society got these wonderful improvements. What enriched the modern world wasn’t capital stolen from workers or capital virtuously saved, nor was it institutions for routinely accumulating it. Capital and the rule of law were necessary, of course, but so were a hard working labor force and liquid water and the arrow of time.

The capital became productive because of ideas for betterment—ideas enacted by a country carpenter or a boy telegrapher or a teenage Seattle computer whiz. As Matt Ridley put it in his book “The Rational Optimist” (2010), what happened over the past two centuries is that “ideas started having sex.” The idea of a railroad was a coupling of high-pressure steam engines with cars running on coal-mining rails. The idea for a lawn mower coupled a miniature gasoline engine with a miniature mechanical reaper. And so on, through every imaginable sort of invention. The coupling of ideas in the heads of the common people yielded an explosion of betterments.

The other day I heard a report about our current Vice President, Joe Biden, wondering what he would do after the upcoming election. He has never had a private sector job working for a “for profit” company in his life. Neither has Barack Obama or most of the Washington DC politicians and bureaucrats. Let us get back to returning government to the people with important decisions made at the state and level local, empower local thinkers and entrepreneurs, and reduce the size of the DC bureaucracy.  Do you believe in the benefits of legal and fair capitalism or do you want a radical change in our system?

Bureaucracy Is Alive And Well

Thursday, May 12th, 2016

May 12, 2016

Bureaucracy Is Alive And Well

Bureaucracy exists not only in Washington DC where it thrives and continues to grow, but right here locally in Shelby County Tennessee. Here is an example.

A number of years ago I filed up to six lawsuits (pro se, for myself) in Chancery Court. When faced with a recalcitrant government agency that refused to comply with our Tennessee Open Records laws I would troop down to Chancery Court with lawsuit papers in hand and plunk down $211.50 CASH money and file the suit. Sometime later when the lawsuit papers were delivered to the Respondent I would sometimes get the requested access action. Other times I would have to wait for the respondent to show up (or not show up) in court. I remember one time waiting in Judge Golden’s chancery court for an attorney from the old Memphis School System to show up. They failed to show up and when I spoke to the court I requested my $211.50 back and an additional $1000 for, my time and expenses. Judge Golden gave me the right for the $211.50 but refused the $1000. The reason for the refusal was that I was not a lawyer and had filed pro se. I guess the legal fraternity sticks together. The judge is a great guy and later when we meet at a gathering, we laughed about the incident.

However apparently I failed to receive back one of the $211.50 fees and I received the attached letter from Chancery Court. I went downtown to Chancery Court and filled out the requested form. The young lady that helped me said that I would be notified when the check was available to be picked up. I requested that the check be mailed and she said that their policy was that checks could only be mailed to out of town people but that I would have to pick up the check in person since I lived in Memphis. “NO MAILING LOCALLY WAS NOT PERMISSIBLE!”. I offered to pay for mailing but that was refused. 17 MILES DOWNTOWN, PARKING FEE, GO THROUGH SECURITY, PICK UP CHECK, 17 MILES BACK HOME. Bureaucracy at work right here in River City.

They said that I would be notified when the check was available. When I received no notice I emailed the Court but still got no answer. The next time I was downtown I went to the Court and sure enough I got the check. I hurried and deposited it as soon as possible.

Now the thing that really galled me was my knowledge that this was the same Court that suffered a $1 million loss beginning in 2008 and ending with a conviction in 2012. So much for the vigilance of bureaucracy!

How We Could Have Saved $1 Million Dollars

Monday, May 9th, 2016

May 9, 2016

 

How We Could Have Saved $1 Million Dollars

 

I have been following the stories about the Memphis Health Education and Housing Facility Board. The story began with the low income properties owned and operated by Global Ministries. Residents complained about bedbugs, rodents and improperly maintained appliances.

 

I began investigating all the various boards and commissions operated under the City of Memphis and Shelby County governments. I found that there were two Health Education and Housing Facility Boards (HEHFB), one run by the Memphis and one by Shelby County. As usual, the one run by the County was better, more open to records access and less controversial. The outstanding difference was a provision of the county board statement of policies and procedures that restricted the amount of cost paid to the Board Counsel. On just 5 bonds issued by the Memphis HEHFB this difference amounted to $59,000. The Memphis HEHFB says that they have issued over 85 bonds. This overpayment to the Board Counsel could be as much as $1 million dollars at the average of the 5 bonds reviewed.

 

At the most recent Memphis board meeting I asked the board some questions and made some public recommendations concerning open records, ethics and conflict of interest. Here are my points.

 

  1. Board agendas should be posted online at their website on the same day they are posted in the Daily News.
  2. All supporting information given to board members along with their agendas should be posted online at the website along with the agenda.
  3. Minutes of the meeting should be posted on the website not later than 1 week after the meeting.
  4. Bond costs and parties to the expenses should be posted on the website when sent to the state as required by law. (Report of debt obligation)
  5. Adopt the same or similar ordinance as the County limiting board counsel fees.
  6. Adopt a strong ethics ordinance regarding conflict of interest and post online.
  7. When a member of the board has a subsequent financial involvement in a board bond or property transaction, that member should make a public acknowledge of that involvement on the board website.

 

I call on the City Council to demand these changes and I ask all citizens and taxpayers to contact the Mayor and their council members to act on this matter. If you have a further suggestion, I ask you to contact Joe Saino at memphisshelbyinform@gmail.com.