Hillary Will Not Be Elected

I’m going to predict Hillary Clinton will not be elected. I believe the majority of Americans are fed up with the lack of economic growth, high unemployment, increasingly bad race relations, politically driven riots, politically driven campus unrest, and an increasingly chaotic international situation. They’re going to vote for a change of government.

The real question is what to do when the GOP controls all three branches of the federal government. What should it do, in what order? Ted Cruz, for example, will immediately repeal what he considers all of Obama’s illegal executive orders. Nice. But of limited impact in the great scheme of things. What I’m concerned about are the fundamentals.

My list of fundamentals:
1. Replace the tax code with a lower, flat tax. Everyone pays at the same percentage.
2. Pass a balanced budget amendment. Include debt repayment in the budget.
3. Require all rules and regulations from any federal agency be approved by Congress. Require a cost-benefit analysis be included for each. Each regulatory agency and its existing rule set should be reviewed and scrubbed.
4. Pass welfare reform. Only the old and infirm should be on social benefits long term. Everyone else should be working and contributing to society. I would be open to CCC and WPA type programs to make the long term unemployed productive.
5. Repeal ObamaCare. Go to a market based healthcare and insurance system. Vastly reduce the legal hurdles and risks to providers. Include tort reform.
6. Repeal Common Core.
7. Review the costs and goals of every federal agency. Close every unnecessary agency. Start with the Dept of Education.

At the state level, I would like to see every Republican controlled governor-legislature team perform a full scale review of its school system: its administrative burden, its curriculum, its goals and its metrics. Consider voucher and competition systems to give parents a choice of schools and make schools compete for students.

People are ready for change. The future of the nation requires it. What good is attaining political power if it is not used?

The other state without a budget

The Wall Street Journal has an excellent article (behind paywall) by Andrew Staub on the budget stalemate in Pennsylvania. While the overall fiscal situation is less dire than Illinois (lottery winners are still being paid), the personalities less dramatic and the politics more genteel, the problems both states are confronting are ones the Federal government is ignoring courtesy of the Federal Reserve and central bankers world wide who tolerate the expansion of American debt.

One interesting aspect of the situation Staub passes over is the split in the Republican party. While the Republicans hold a majority in both houses, they are really composed of two factions, liberal leaning Rockefeller Republicans from the eastern side of the state and more conservative members from the west. They are not so far apart that they could be described as RINOs and Tea Partiers, but their inability to consistently act in concert has weakened their numerical majority in the past. However, they recently united to pass a sure to be vetoed paycheck protection bill that had foundered under the previous Republican governor because of resistance from the easterners. This is an indication that, at least in opposition to a Democrat governor the Westerners are starting to prevail.

On the other hand, Governor Wolf sent a tax increase bill to the House, forcing Democrat members to vote on it and the Republicans were happy to accommodate him. 73 Democrats walked the plank for their leader and 9 refused, creating division in the usually solid Democrat ranks. It will be interesting to see the electoral consequences for them.

But there is insufficient power on either side to prevail in the budget impasse. Until the schools start closing, probably after Christmas, there is little pressure on either side to move.

In addition to all this, Kathleen Kane, the Commonwealth’s attorney general has lost her law license as a result of her actions in disclosing sealed information from an investigation into pornographic emails circulating among, allegedly, PA Supreme Court staff and personnel in the AG’s department. She then accused a member of the court of sending and receiving racial, misogynistic pornography. She is under investigation for releasing the materials and the Supreme Court has suspended her license to practice law. The post of AG is frequently a stepping stone to the governorship in PA and the Democrats have lost an attractive potential candidate and leader.

Pennsylvania has been a solid Democrat state in presidential elections. But with the party torn apart, the deceased in Philadelphia may not be able to turn out in sufficient numbers next November to assure the result, if the Republicans can provide an acceptable alternative to HRM. But then PA always finds a way to leave the Republican candidate standing alone at the altar.

Risk: An Allegory

Here’s an interesting article on CNBC’s website: Katrina anniversary: Will New Orleans levees hold next time?

The 100-year threshold is also a statistical guess based on data on past storms and assessments of whether they’ll occur in the future. That means the models change every time a new hurricane strikes. The numbers being used as guidelines for construction are changing as time passes.
 
The standard also does not mean—can’t possibly mean—that a 100-year storm will occur only once per century. It means that such a storm has a 1 percent chance of happening in any given year. So for example, it’s technically possible for several 100-year floods to occur in just a few years, although it’s highly unlikely.

One way to look at it is that the engineers need to estimate how high a wall New Orleans needs to protect itself against a reasonably unlikely flood — say, a 1-in-1000-year event. This is the line of discussion pursued in the CNBC article.

Another way to look at it is to observe that the odds of another Katrina, or worse, within a specified period are highly uncertain. In this case a radical course of action might be called for. You do something like: take the best estimate for the wall height needed to protect against a 1000-year flood and then double it. Building such a levee would probably be extremely expensive but at least the costs would be out in the open. Or you might decide that it’s not the best idea to have a coastal city that’s below sea level, and so you would discourage people from moving back to New Orleans, rather than encourage them by subsidizing a new and stronger system of walls.

In this kind of situation the political incentives are usually going to encourage public decisionmakers to ignore radical solutions with high obvious costs, in favor of the minimum acceptable incremental solution with hidden costs: probably subsidies to rebuild the levees to, or perhaps a bit beyond, the standard needed to protect the city in the event of another Katrina. And it’s unlikely that any local pol is going to advise residents to move out and depopulate his constituency. Thus, eventually, a worst case will probably happen again.

Quote of the Day

Richard Fernandez:

If you had to name ten things “which changed everything” in the last 2 decades nearly all the good stuff will have crept out of woodwork from the inner pages while all the bad stuff was parading above the fold. You can even think of the inner pages as being in an endless war with the front page, in an unending battle between the ordinary working stiff and the self-important leaders. The working stiff makes and the self-important leader taxes and wastes. Booms happen when the regular Joe can temporarily outpace the great men and the years of the locust occur when the opposite is true.

This is a nice post that touches a number of important themes about progress and how people perceive it. Worth reading.