The Latest From The Libertarian Writer's Bureau

Ah, the economics of disaster. While there has been much hand-wringing and accusation about the stinginess of American giving (bunk, of course), there is a correct place for accusation against American policy in one area: trade. Sri Lanka is a poor country. American policy on trade coming from Sri Lanka hasn't helped. From Dr. Eric Schansberg, and the Libertarian Writer's Bureau:

Worse Than Tsunami, Trade Protectionism Hurts Third World Citizens

by Dr. Eric Schansberg
Libertarian Writers' Bureau

Last Thursday, I was heartened to read the news that my church, Southeast Christian Church in Louisville, KY, had collected $732,000 from its members (beyond its weekly giving) for tsunami relief in Southeast Asia. That partially offset the news I had read the previous Thursday-- as reported in the Wall Street Journal-- that tariffs imposed on Sri Lanka were nearly $250,000,000 in 2003.

Nearly all of that amount was taxes imposed on the Sri Lankan textile industry. And the amount imposed on that one foreign industry exceeded all of the tariffs imposed on all trade with all six Scandinavian countries-- despite the fact that those countries export nearly 12 times more to the U.S., have about 10 times more GDP thanSri Lanka's, and have people whose per capita incomes are far higher than those in Sri Lanka.

Why does this occur?

The textile industry in this country is one of many special interest groups that benefits from having their competition restricted. They and their politicians find it favorable to impose discriminatory taxes on foreign producers and American consumers.

In contrast to the obvious benefits for politicians and the protected industry, the costs imposed are subtle. How many consumers know that they pay significantly higher prices for clothing because of these laws? How many voters care that foreign workers and investors in poor countries are impeded in their ability to sell product within the wealthiest market in the world?

Because Christians tend to pay almost exclusive attention to relatively few (albeit important) issues, they often ignore other important policies. The passions of the Religious Right flair on issues of social morality and abortion, but they rarely think about issues of economic justice. The Scriptures, especially through theprophets, give a more balanced picture. The interests of the Religious Left are centered more tightly around the fate of the poor.

But their policy attentions in that realm are relatively narrow, focusing mostly on welfare and foreign aid. Pragmatism would seem to warrant discussion of a wider set of issues. Christian Libertarians are excited about voluntary displays of charity, but saddened that political shenanigans can so easily swamp the efforts of compassionate people.

All that said, care for the poor and oppressed is not a strictly Christian exercise. And very few people-Christian or not-are informed about the primary and secondary consequences of significant policy issues. Although Southeast Christian Church can be pleased and honored to pay part of Uncle Sam's tax bill for the Sri Lankans,perhaps all of us should pay more attention to the larger issues of trade protectionism and the mechanics of economic justice.

Eric Schansberg
Professor of Economics
Indiana University Southeast
author of Turn Neither to the Right nor to the Left: A Thinking Christian's Guide to Politics and Public Policy

This is What You Want, This is What You Get

Worst fears have been confirmed. Governor Mitch Daniels is a Republican of the new mold- not at all a fiscal conservative, but something they self-describe as “fiscally responsible”.

In his State of the State Address tonight, Daniels begun to make good on the implied threat that he would raise taxes to balance the budget. His recommendation to lawmakers is that state income taxes should be raised 1% for those who earn $100,000 or more. Indy Star story.

Fiscal conservatives wanted a Governor who would cut spending at the least, and possibly even cut taxes. What they- and all Hoosiers- got was a liberal Republican, one who believes in the progressive income tax.

One line stuck out, and I was glad to see the Star report it: "The wolf is not at the door, he is inside the cabin," Daniels said. Actually, Daniels is the wolf, and the cabin is the Statehouse.

What is remarkable about this brainburst is that it Hamilton County takes the lion’s share of the credit for electing Daniels. County GOP Vice Chair Charlie White mustered over 700 volunteers in support of the Daniels' campaign. Some thanks White and Hamilton County gets for their effort. Hamilton County is also where a preponderance of those earning $100,000 or more live. Why not just stop by everyone's house to personally slap their faces?

Daniels had the incredibly bad form to recommend a temporary income tax. To paraphrase Will Rogers and speak common wisdom, there is nothing quite as permanent as a temporary tax increase.

This is obvious. It’s so obvious that even a Democrat from Gary could scoff at Daniels’ claim. From another Star article:

Rep. Charlie Brown, D-Gary, "whoever heard of a temporary tax increase?"

Fiscal conservatives have been sold out at the top. The next question is: Will the legislature follow? You can tell that Republicans want to support their man Mitch, but know that promises have been made not to raise taxes.

Rep. Gerald Torr, a Carmel Republican whose constituents would be disproportionately affected by the one-year income tax increase, said he'd like to talk to Daniels about including a provision to refund the tax increase when the state's finances improve.

Torr, whose party took control of the House with 52 of its 100 seats in the last election, said: "There are a lot of us who aren't terribly excited about a tax increase."

Fiscal conservatives had pinned their hopes on Daniels and have been let down. When will you learn?

You need to vote Libertarian if you ever want a significant budget or tax cut. Republicans clearly lack the courage.

The Lighter Side of Flooding

Since most of Indiana has some measure of standing water covering it, and has for about two weeks now, it seems that many are throwing up their hands in realization that Mother Nature will need some time to run its course, taking water from the various streams to the White River, on to the Ohio, the Mississippi, and to the Gulf of Mexico. Ditto, obviously, California and the Pacific Basin.

Ergo, this joke. I wish I could give credit to somebody on it, but it's one of those making the rounds via e-mail without credit. Enjoy!


It was the year 2004 and Noah lives in the United States. The Lord spoke to Noah and said:

"In one year I am going to make it rain and cover the whole earth with water until all is destroyed. But I want you to save the righteous people and two of every kind of living
thing on the earth. Therefore, I am commanding you to build an Ark."

In a flash of lightning, God delivered the specifications for an Ark. Fearful and trembling, Noah took the plans and agreed to build the Ark.

"Remember," said the Lord, "You must complete the Ark and bring everything aboard in one year."

Exactly one year later, a fierce storm cloud covered the earth and all the seas of the earth went into a tumult. The Lord saw Noah sitting in his front yard weeping. "Noah." He shouted, "Where is the Ark?"

"Lord please forgive me!" cried Noah. "I did my best but there were big problems. First, I had to get a permit for construction and your plans did not comply with the codes. I had to hire an engineering firm and redraw the plans. Then I got into a fight with OSHA over whether or not the Ark needed a fire sprinkler system and floatation devices.

"Then my neighbor objected, claiming I was violating zoning ordinances by building the Ark in my front yard, so I had to get a variance from the city planning commission. I had problems getting enough wood for the Ark, because there was a ban on cutting trees
to protect the Spotted Owl, and a substantial tariff on Canadian lumber.

"I finally convinced the US Forest Service that I needed the wood to save the owls. However, the Fish and Wildlife Service won't let me catch any owls. So, no owls. The carpenters formed a union and went out on strike. I had to negotiate a settlement with the National Labor Union.

"Now I have 16 carpenters on the Ark, but still no owls. When I started rounding up the other animals, I got sued by an animal rights group. They objected to me only taking two of each kind aboard. Just when I got the suit dismissed, the EPA notified me that I could not complete the Ark without filing an environmental impact statement on your proposed flood.

"They didn't take very kindly to the idea that they had no jurisdiction over the conduct of
the Creator of the universe.

"Then the Army Corps of Engineers demanded a map of the proposed new flood plain. I sent them a globe.

"Right now, I am trying to resolve a complaint filed with the Equal Employment Opportunity Commission that I am practicing discrimination by not taking godless, unbelieving people aboard!

"The IRS has seized all my assets, claiming that I'm building the Ark in preparation to flee the country to avoid paying taxes. I just got a notice from the State that I owe some kind of user tax and failed to register the Ark as a "recreational water craft."

"Finally the ACLU got the courts to issue an injunction against further construction of the Ark, saying that since God is flooding the earth, it is a religious event and therefore unconstitutional.
I really don't think I can finish the Ark for another 5 or 6 years!" Noah wailed.

The sky began to clear, the sun began to shine and the seas began to calm. A rainbow arched across the sky.

Noah looked up hopefully. "You mean you are not going to destroy the earth, Lord?"

"No," said the Lord sadly. "The government already has. "

More How To Govern 101

The boldness of new governor Mitch Daniels is astounding. He hasn't taken a soft item yet. Everything is laced with controversy. I guess that 9-point victory over Joe Kernan is not merely interpreted as a mandate, but as holy writ.

First issue: Daylight savings time, with built-in 50/50 division.
Second issue: Severing the collective bargaining agreement with state employees, creating very interested opposition from the affected unions, and a sizeable percentage of the employees.

New issue: cutting Indiana Medicaid. Indy Star story. Expect to hear the wailing immediately. "Evil Mitch Daniels is taking aid away from the children!" That claim is fact. Medicade stats show that nearly 70% of recipients are children. "Those vicious Republicans are taking away from the poor!" Well, 92% of spending is on the disabled, elderly, and children. Mitch Roob is a human services aide to the governor. His comments in the Star story give all the ammo the opponents will need. Quoth the Star:

"Roob, who used to run Wishard Memorial Hospital, a county-run hospital in
Indianapolis, acknowledged that cutting Medicaid payments could limit access to
pregnant women and children, people with physical and mental disabilities and
seniors who rely on the state-federal program."

The problem with identifying individual programs for cuts is that their defenders pop out, decrying the action as unfair, and say that there are better targets for cuts. Raising taxes on millionaires is popular policy, since most people aren't millionaires, and nobody feels sorry for millionaires anyways. But pregnant women and children?

If you really want to cut a budget, you pretty well have to cut across the board. If this kind of cut is promoted, nobody can claim they have been singled out. No lobby can emerge and call it unfair. You can make it strictly economic and point to the dollars coming in and the current spending commitments, and show the difference.

I prefer a 10% cut across the board. If there is a surplus generated by this, put half in the emergency fund, and return the other half to the taxpayers in a refund check.

Believe in Self-Responsibility?

This week provides an excellent test for property owners across Indiana, what with the unusal high rains that have followed the run-off from melting accumulated snowfall. Do you believe in self-responsibility?

If your property is flooded, is it anybody's fault? It is entirely possible that the parcel your home of business is located on has always had standing water in flood events. Are you responsibile, or is your builder? Or your city? Or your county? Or your state?

If you bought the property, didn't you take it as acceptable as built? Caveat Emptor! Is the buyer completely absolved of the responsibility of due diligence?

I see it as a two-way street. Too many buyers of homes or business buildings, whether new or long established, fail to look at drainage or other more technical concerns. Home buyers look at the aesthetics, the proximity to the schools, to the parks and shops, and to the highway. They never notice drainage unless it is overwhelmed. They can buy a home next to a double-tracked railroad mainline that has stood since the Civil War and moves 100+ trains a day, and then complain about the noise! Buyers of business space look for square footage, proximity to the highways, visibility for drive-up business and signage, and tax rates. They, too, never notice drainage unless it is overwhelmed.

Sellers are very eager to part with any parcel in exchange for greenbacks. What is amazing to me is how many parcels are under six inches of water continuously in February, March, and April, and then sell at a real bargain price in August, September, or October. Come February or March (or January this year) the new owner is livid.

Did the seller conveniently fail to disclose? Did the buyer willingly overlook the disclosure in order to arrive at a bargain?

So, who is at fault? Unfortunately, that is one to be sorted out by legal teams. I do put onus, not necessarily fault, on buyers.

Investing in property is usually the largest investment most people will ever make in their lives. You will spend more time in your home than you will spend anywhere else. And yet, I've seen people spend more time planning a 7-day vacation than they spent examining the land surrounding their future home site. Shouldn't you make 2-3 dozen visits to the site to examine traffic patterns? It's amazing to discover where the landing and takeoff flight patterns are, even 20 miles from the airport. Shouldn't you ask next-door neighbors what happens in the area in storm events? Etc.

Too many buyers assume that everything has been worked out, and that any thinking beyond sale price is unnecessary. Well, you see the results of that approach.

Hopefully, you bought insurance. Those who believe in self-responsibility resent having to bail out those who refused to think.

Governor Daniels' Bold Start

I have to give the new governor a nod of admiration for his self-confidence. Either his self-confidence is at an astronomical level, or he is ignorant of Governing In Your First Week 101.

That latter course was most brilliantly taught by Professor William Jefferson Clinton, who, upon his inauguration, launched headlong into two controversial policy items- nationalized health care, and gays in the military- without first building political capital by executing some easy, popular tasks.

Daniels is following Prof. Clinton's example. Just two days into his term, Daniels has already made changing to Daylight Savings Time his top priority, and has ended the collective bargaining agreement with unionized government workers. Indy Star story on DST priority. Indy Star story on the CBA.

The latter was unavoidable. It had to either be renewed or let to lapse immediately upon the new term.

The clocks issue is just a political nightmare. If Indiana adopts DST, there are those who will wail just because a change has occurred. Since one corner of the state aligns with Chicago, and another side with Ohio, any change will leave one side grumbling. This is a policy that should have been put off for at least two months.

Still, a nod to his courage or boldness, or whatever it is. Just not A-1 strategy. It only bothers me in that I would rather have seen the governor spend political capital on cutting spending than on Daylight Savings Time.

Another Case for Tort Reform

The great thing about the TV is that when something on the screen offends, annoys, or just plain sucks, you can either change the channel or turn the blasted thing off.

If you are especially put off by the program, you can write the network and express your displeasure.

Unfortunately, you can also sue the network and the producer of the show. This is what one Austin Aitkin of Cleveland is doing in response to an episode of Fear Factor. Apparently, the contestants on the show were expected to consume a drink of rat juice from the blender. Per the AP:

Aitken, 49, said he wants to send a message to NBC and other networks with the lawsuit. He said he isn't concerned with winning a cash judgment in court.

"I just put any figure. You really think I expect to get 2.5 million?" he said.

Actually, my bet is not so much with expecting to get that money, but with hoping to get it.

I'd like to send a message to those who would place frivolous lawsuits on the docket: knock it off. The kind of reform that is needed would cause for litigants to pay a large docket fee, say $10,000 in cash, that would be returned to them with interest by the defendant in the event the plaintiff won the case. This large docket fee would require the would-be litigant to think twice before filing, considering whether or not the case had real merit.

Aitken's handwritten lawsuit contends the rat-eating made his blood
pressure rise, making him dizzy and lightheaded.

"I didn't see the doorway on route to my room," his lawsuit reads.
"I ran into it causing suffering, injury and great pain."

This is why I say the suit is unfortunate. People experience real pain that is caused by others. These victims should be able to sue those who brought them real pain. Didn't see the doorway? This makes one a moron, not a victim.

Asked why he didn't shut off his television before the rat-eating
segment, Aitken said he couldn't do it quick enough.

NBC responded with a brief statement: "We believe that the claim is
completely without merit."

Amen, NBC. Let's hope that the judge who gets this case dismisses it summarily. Another way to reform the system is for judges to find those who bring frivolous lawsuits in contempt and to fine them. Either way works for me.

Tiring of the Contest

The relief coming from all corners of the globe to help rebuild areas affected by the tsunami has been a source of mixed emotions for me. I am heartened by the support shown globally, by individuals and by governments. Politically, I'd rather not see governments use tax dollars this way, but we are in the system we're in, and if tax dollars are going to be spent to help people, this is one such use that it is hard to be cynical over.

Or you would think. There has been incredible cynicism shown in comments issued by those on the left and the right, questioning many donations as 'stingy'.

I think the phrase any observer should utter when considering anyone else's donation is "thank you".

Instead of "thank you", there have been insults hurled in all directions.

The left had heaped scorn on the US for its initial relief donation as too small and stingy. Increased to a significant level, the American relief is now scorned as embarassing because it is smaller than Australia's. The right has heaped scorn on Muslim nations for donations they believe to be too small and stingy, and on Hollywood types who have not given anything.

Enough. Stop the judgments. Nobody had to give anything. If you really believe in humanitarian aid, begin to take stock in the fact that there were no obligations, and yet, for the benefit of humanity, a great deal of wealth was given.

Thumbs Up To Pence

I love giving credit where credit is due. Today, Mike Pence (R-IN) gets heaps of praise from this Libertarian for wanting to scale back some of President Bush's initiatives. It's as if I had written them. From a CNN story:

• Change the prescription drug benefit passed recently by Congress from a "one-size-fits-all entitlement" to a benefit for those who need federal help to buy prescription drugs.
  
• "Reverse the expanding federal role in primary and secondary education, which conservatives believe is a state and local function."
  
• Begin to steer back to the goal of a balanced budget.
  
• Restore the First Amendment protection of freedom of speech by pursuing changes in new campaign finance laws.

His words are as if they were mine:

"The fate of the Republican majority ... will be largely determined by whether or not we rediscover those principles of limited government that more than anything else propelled us to majority status," said Pence, chairman of the Republican Study Committee, a group of more than 100 conservative House members.

Thumbs up, Mike Pence!

Fading From The Radar

Normally, I view it as a bad thing when a Libertarian who introduced a policy matter or a legal challenge fades from view or has the limeline taken from them.

Today I cheer it, as presidential candidate Michael Badnarik's ill-advised challenge to the Ohio results has finally been taken over by the Democrats. AP story.

It had looked all along as though Badnarik was carrying water for the Democrats, with no discernable payoff in sight. So, why bother? If it was the matter of principle Badnarik was claiming it was, shouldn't the Democrats, the ostensibly disenfranchised, make their own case? They have the resources, and they should at the very least demonstrate the interest.

Now they are, and it will look foolish. Ah, well, better that the Democrats should look foolish for protecting their own interests rather than the Libertarians playing the fool for fighting on behalf of the Democrats.

On to more important things.

Quoth Twain

No man's life, liberty, or property is safe while the legislature is in session. -- Mark Twain (1866)

Well, the Indiana Legislature is in session, and my interest is in the property of all Hoosiers. In particular, I am interested in the preservation of the wealth of each individual.

Best case scenario: A balanced budget is adopted, and spending is cut by at least 10%.
Worst case scenario: This could be endless, but I'll keep it simple. A budget that increases the budget. Worse, a balanced budget that features higher taxes. Any higher spending levels.

Interested parties can keep an eye- or ear- on the proceedings. One excellent use of the State's website is to make a streamed signal available. Sadly, streamed audio is blocked by most employers, and this is one broadcast worth hearing.

Again, my hopes are for a balanced budget, and a 10% cut in spending. I don't think that's too much to ask of a state government dominated in all branches by Republicans, who at least used to be fiscal conservatives.

Great quotes on liberty are compiled on the Fort Liberty webpage.

Dismal Showing

You figure, Belarus has lost their previous games by a combined score of 19-4, and the US had beaten the teams that had beaten Belarus, so it should be a walk in the park.

Wrong. When you fail to play defense, you lose. The US dropped their game in the World Junior Tournament, 5-3. They slide to 2-1 in the standings, with a game against a very good Czech team tonight.

Still no word from ESPN on future programming for the Tournament. It probably depends on the USA's seeding.

Wide World of Sports

This is usually the most fun time of the year for sports viewing, but with the NHL still in their pathetic lockout situation, my fun is greatly diminished.

Fortunately, there is some hockey to watch, as the World Junior Tournament is going on right now. The US team has won their first two games, and plays Belarus tonight. ESPN2 will air the game at 9:30pm (EST), and I'll be in front of the set. Unfortunately, there aren't any other games scheduled yet. Maybe ESPN is taking a wait-and-see approach to scheduling more games. Hopefully, the ratings for this game will be high enough to bump a re-run of the World Series of Poker.

I like the World Series of Poker, by the way. Texas Hold-Em is a great game, and it's fascinating to watch the pros play. It's just that they've aired the 2003 & 2004 tournament to death.

The death of Reggie White was startling. He was only 43, and unlike jocks who die young due to substance abuse problems, such as Ken Kaminiti recently, this just makes you shake your head. He was playing in the NFL just four years ago. ESPN Classic will air a day of tribute on Friday. It's just another reminder that you don't know when your time will come, and to take advantage of every minute.

Less Blue

OK, I was a tad harsh on the Mayor with yesterday's post on the agreement with the Colts on a new stadium. Since the plan is clearly not going to be tax-funded, I will today give him credit for that. Good show!

On the other hand, I still think that the quest for funding could be done better than by using gambling revenue. The possibility of using gambling revenues as the source of funding is as troubling to some as using taxes is to others. Fortunately, three good options are available that are enormous civic pride opportunities.

1. Join a consortium of investors
2. Purchase shares of stock in the project
3. Purchase bonds in support of the project, a la WW2-era War Bonds

By using these three methods, the funding is achieve solely by the choice of the participants, and directly so, as opposed to the gambling funded method. People will choose to get involved because they believe in the project. They will have a stakeholder interest far beyond the guy who drops ten bucks on pull tabs and loses.

Civic projects can and should be a source of pride to as many people as possible. Using funding that people will be eager to provide is an excellent way for everybody to come out a winner.

Good so far. Make it better.


Notes:

Is the sale of stock in a stadium a good way to raise money? In 1998, the Cleveland Indians sold shares of stock in an IPO at the initial offering price of $15/share. This raised $60 million, selling out the stock in rapid fashion. That's not a huge percentage of the $800 million or so needed to be raised. No problem. Set the amount to be raised by this device to $150, with a higher initial offering price tag, and this can be achieved easily.

Will the stock be worth anything to the investor? Possibly not. There is always the risk of a crash when investing in the stock market. Many subscribers will be glad to simply buy the stock certificate as a piece of history and something to frame and hang in the den. The 1998 Indians stock certificate goes for $150 on collector sites. Others will treat it as a business and look for a dividend, or to sell if the price rises with the success of the complex. The story of the Indians stock had a happy ending.

War Bonds sold phenomenally well because the public believed in the cause. I think that enough people in Central Indiana would buy Stadium Bonds because they believe in it. Pie in the sky guess? I think $150 million could be raised from investors on this.

Wearing Colts Blue

So, Mr. Irsay got the City of Indianapolis to shell out some money to build him a new palace, so that he can make some more money, thus preventing (for the next 5-10 years) Colts from taking the moving van night express down the interstate, just as the Baltimore Colts did back in the early 80s.

I can't say I blame him for having asked. So many cities give the moon. City officials always cite jobs, but are also always certain to insist that the prestige of the city would dive if a major sports team left.

I'm a big sports fan, but I'm also a big fan of classic and exotic automobiles. I drive a 1997 Saturn, which is neither of these things, but it sure gets me from-A-to-B. It's a reliable car, and gets very good fuel economy.

Just the same, I'm thinking that I'd like to have a Rolls-Royce... and a Ferrari... and a Maserati. These would look really good in my driveway, and I would look and feel much better about driving them than I do about my Saturn.

I'm thinking that I'd like everyone on my block to pay for these luxury automobiles. Heck- it will improve the prestige of my neighborhood if out-of-towners were to drive down my street and see the Rolls. My neighbors will enjoy the benefit of this enhanced prestige, and it will only cost them each a little bit. They'll hardly notice how much it is.

I'm even thinking that about 10 to 12 times a year, I will allow my neighbors to take a spin with me in the Rolls or the Maserati. They can pay me admission to ride in my car, getting the direct benefit of having purchased the cars for me. Sometimes they can even ride shotgun. Of course, you don't always get to sit on the 50-yard line, so sometimes, my neighbors will have to ride in the trunk. Heck, though- the tickets are almost half price!

Maybe they can't afford the price of tickets for the whole family to ride. Well, they can stand on the sidewalk and watch as I drive by with those who can afford the price of admission. Still- they're getting the enormous benefit of having created a sense of civic pride and prestige for our neighborhood, thanks to my cars. Of course, I'll only let them stand on the sidewalk if I've sold out the admissions to all of the seats, including the trunk. I'm not kind of idiot who is going to let people watch for free from the sidewalk when I have empty seats!

So, hats off to Jim Irsay. He sold his bill of goods lock, stock, and barrel. I'm impressed with his moxie.

I'm less impressed with Mayor Peterson. He gave away the store and gets very little in return. He'll claim it was great leadership to keep the Colts here. Great leadership would have included a stadium that was fully privately funded.

This is not impossible. Look at the Brickyards or Nationwide Arena in Columbus, Ohio for good examples of privately built arenas that were built with private funds and are thriving.

While the Mayor or Mr. Peterson may not have been able to locate a single source of funding, think of the extraordinary opportunity to build civic pride that was lost. They could have built a consortium of local business who would have invested in the project, thus taking a real stake in the success of the project. They could have sold shares of stock to Colts fans and raised a huge sum, rather like the Cleveland Indians did a few years back.

Nope. Easier to tax or to create a government monopoly casino to pay for it.

Maybe it's time to ask for that Rolls Royce.

LPIN Grows Today!

Excellent news for the Libertarian Party of Indiana, with the re-affiliation of Allen County. This county is home to Fort Wayne, one of the largest cities in Indiana, and traditional a power base of fine libertarian activism.

I am looking forward to seeing Allen County rival LaPorte, Monroe, Wayne, Hamilton, and others for #2 county status amongst the LPIN. It is conceivable that with the momentum they create today, they could have the second-greatest number of Libertarian candidates in 2006.

Of course, we here in Hamilton County will give them a run for their money. Watch us grow, while the other parties hibernate!

Telegraphing Future Disappointment

Well, my fellow fiscal conservative! You come knowing that it is a well-known fact that the state of Indiana faces an $800 million structural deficit. You are desperately hoping that spending cuts are the means to solving this problem rather than tax hikes.

Bummer for you: the Republicans lack the will to cut spending.

They do not lack the tools. The GOP inaugurates a governor next month and will usher in majorities in the both houses. There are the tools. They will sit in the woodshed while the spending tools will be used. From an editorial in today's Indy Star:

"Indiana's structural deficit stands at near $800 million. The state also owes schools and universities more than $700 million in deferred payments. The rainy day fund has been largely depleted, dropping perhaps to only $46 million by the end of this fiscal year.

Factor in eventually repaying the $380 million borrowed from the Pension Stabilization Fund to keep the state afloat for the past two years. Plus rising Medicaid costs, potentially another $300 million in additional spending. Plus $160 million the state will pay out in property tax relief.

It all adds up to what some legislators are describing as, in Kenley's words, "the session from hell." Tax increases certainly cannot be ruled out. Spending cuts are likely. Kenley, chairman of the Senate Education Committee, says he's preparing for a flatline budget -- meaning no extra money for schools. Others wanting more money likely will be turned away as well."

Tax increases cannot be ruled out? Why not?

Spending cuts are likely, yet Kenley is preparing for a flatline budget? Cuts and a flatline are two different things.

Instead of really cutting spending, this is how Republicans plan to close the gap on the deficit, per the Star:

"But there's also opportunity. It starts with reforming the maze of 74 agencies and 319 boards that is Indiana state government.

Gov.-elect Mitch Daniels has proposed a government reorganization plan that must be pushed forward at the same time Espich and other lawmakers are shepherding the budget through the Statehouse."

That's all very nice and commendable, and should serve as an excellent start towards fiscal health at the state level. The other very necessary component is a real cut in spending.

I am calling for a baseline 10% cut in spending. I'm not calling for a radical slash-and-burn. I'm calling for something that can be done without the usual accusation that the Libertarian solution will leave the state in ruins. I urge my readers to write the editors of their newspapers and their representative to urge a baselline 10% cut. Make sure to tell them that you are a fiscal conservative and that you expect this sort of action from a GOP majority, and that if you don't get it, you'll vote Libertarian in the future.

If the GOP proceeds as they plan to, this will indeed be the session from hell- not for poor Luke Kenley, but for fiscal conservatives across the state.

Planning To See Alex

My son Alex will be 13 this January. 13! I'm planning to visit him in Puerto de Santa Maria, Spain for his birthday. We visited there last year while he still lived in Rota.

I just discovered that I can upload pictures (duh!), so here's one of us there:

Alex & Dad walking the streets of Puerto de Santa Maria 

More Hockey Fill-In

As with last Wednesday, I enjoyed another replay of some old-time hockey with FoxSports Midwest's airing of a 1986 St. Louis Blues playoff game. With the NHL lockout appearing to be an endless proposition, these re-runs have been a welcome sight.

This time, the Blues won Game Seven of the Norris Division Finals, defeating Toronto 2-1. More observations on how the game has changed:

There were two fights... during power plays... in the first period! In today's NHL, you wouldn't see two fights in a playoff game at all, unless it was late in the game and something stupid inspired it. These were just de rigeur scraps.
The goalie equipment was so small! And the pads were brown leather! No team colors on the pads.
The games were desperately played, with an emphasis on offense. Today's playoff games only have that feel when it's a one-goal game and in the latter half of the third period.
A Sutter was on the ice instead of behind the bench.

FoxSports will show more games so long as the lockout continues:

2004-05 FSN Midwest Schedule of Classic Blues Games
Air Date Time (CT) Game Game Date
Wed., Nov. 24 7 p.m. Pittsburgh at St. Louis April 14, 1981
Wed., Dec. 1 7 p.m. St. Louis at Minnesota April 15, 1986
Wed., Dec. 8 7 p.m. Toronto at St. Louis April 30, 1986
Wed., Dec. 15 7 p.m. Calgary at St. Louis May 12, 1986
Wed., Dec. 22 7 p.m. Detroit at St. Louis April 16, 1991
Wed., Dec. 29 7 p.m. Detroit at St. Louis Jan. 23, 1993
Wed., Jan. 5 7 p.m. St. Louis at Toronto Nov. 29, 2000
Fri., Jan. 14 7 p.m. Dallas at St. Louis May 3, 2001

Missed that old Pens' game, when they still wore blue uni's, prior to the Mario Lemiuex era, but I won't miss that game with Calgary!