Rape the Forest, Fleece the Taxpayer, and Ship Fuel Halfway Around the World

Q: What happens when you combine Malaysian palm oil diesel and American renewable fuel subsidies?
A: Splash and Dash!

It's Big Agriculture Week at the Lawson for Congress Blog.

Thought folks might enjoy this one:

http://blog.lawsonforcongress.com/2008/05/22/giving-away-the-farm-part-ii-splash-and-dash/

... and, of course, the Farm Bill:

http://blog.lawsonforcongress.com/2008/05/21/giving-away-the-farm/

BJ

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Good stuff

Damn I wish you were running as a Democrat. I know you want to rise above all that partisan stuff, but the truth is, you can't, not with the systems we have in place to control how power is distributed in Congress.

And yet.

Perhaps it's just a tweak or two to the subsidy for "blenders" that is needed to boost bio-diesel use in the US and prevent it from being exported. Yes? Maybe in this case, that's where taxpayer money can be best used. I would not want to throw away all government subsidies and/or incentives for everything because there have been mistakes with some -- and I'm not arguing that there have been mistakes with some.

But there are instances where government subsidy can make the difference and make or break a business. Child care, for instance. It's necessary for most families with young children these days, in one form or another. The true cost of child care is not covered by parents' fees alone, even if the parent is paying the total "market rate". Without government programs like the Child and Adult Food Program, many child care programs would not be able to provide the nutritious meals and snacks that children need. Without child care subsidies for families, many lower income families would not be able to afford to work at all. In this economy especially, this is not the time to be talking about getting rid of all government subsidies. Better oversight? Hell yes. Eliminate? No.

Your mileage may vary, of course. It's just not an either/or world.

Be the change you wish to see in the world. --Gandhi
Pointing at Naked Emperors

Arrrrgh!

Linda, I share a lot of frustration on these issues. We all want "progress", the question is how to get there.

With respect to subsidy "tweaks" to boost bio-diesel use... I know a LOT of folks who are really concerned with their grocery bills. And restaurants, as well, struggling to absorb the rising cost of food.

Should we continue to use government money to encourage turning food into fuel? Or are hungry people telling us that we should be eating the soy at this point, instead of burning it?

Roey Rosenblith makes a good point in response on my blog:

Right now the US has tarrifs on both ethanol and biodiesel produced in other countries and shipped into the US. This might make sense with Brazil that could flood our market. But what about southern Mexico whose agricultural sector has been collapsing ever since NAFTA flooded their market with subsidized US farm products (well until food prices shot back up, now with Mexican ag sector nearly destroyed).

I think discriminatory tariffs and subsidies are BOTH bad. We shouldn't be destroying foreign growers through domestic subsidies and tariffs that lock out foreign suppliers. I've tried to find examples of subsidies that have "helped", and come up empty. Any help there is greatly appreciated.

While it's difficult to quantify, evidence suggests that our federal government is actually subsidizing our addiction to oil. Two wrongs don't make a right -- so why don't we stop subsidizing oil as well as biofuels? Letting the government "pick winners" in the energy business might make special interests happy, but it's not helping the average American.

And then there's the child care thing:

Child care, for instance. It's necessary for most families with young children these days, in one form or another. The true cost of child care is not covered by parents' fees alone, even if the parent is paying the total "market rate".

How sad is this? Our monetary system allows our government banks to create money, thus creating inflation that transfers wealth from savers and wage-earners to banks and recipients of government largess.

As wages don't keep up with inflation, now it takes two wage earners to provide (or one wage earner working overtime). Regardless of the parents' career goals, raising children becomes a financial liability instead of the family's primary mission.

How does government-subsidized daycare help us improve the next generation? Can we just ship our children to childcare factories, and expect to reap educated, creative, compassionate, and engaged individuals who are confident in their abilities to effect positive change in the world?

I'm not saying that moms and dads shouldn't have every opportunity to self-actualize and reach their career goals. I am saying that we've all but removed the choice for many parents to raise their children.

We've sacrificed parents as the primary instrument of social progress on the altar of a declining paper currency -- folks are on a treadmill, working harder and harder just trying in vain to keep up.

Unless we understand how our government's ability to silently create new money is killing us, we'll be treating the wrong disease indefinitely.

(Well, not indefinitely. These systems tend to come to an end, although in an unpleasant way.)

BJ

William (B.J.) Lawson
Congressional Candidate, North Carolina's 4th District

William (B.J.) Lawson, M.D.
Congressional Candidate, North Carolina's 4th District

Interesting.

BJ - I agree with you completely about the food vs. fuel issue. I would rather see people all over the world eat and have everyone pay more for fuel, or not have fuel at all. (Of course, I understand it takes some fuel to cultivate some crops...it's an unending logical cycle we get into there.)

I don't pretend to understand all of the international implications of tariffs and subsidies for fuel and/or food. But I can address the child care issue.

As wages don't keep up with inflation, now it takes two wage earners to provide (or one wage earner working overtime). Regardless of the parents' career goals, raising children becomes a financial liability instead of the family's primary mission.

You're assuming a two-parent family. That's not necessarily the norm any more. I spent most of my son's life as a single mom. If it were not for child care arrangements after school, I would not have been able to raise him. I never saw him as a financial liability, and raising him has always been, and still is, my primary "mission". As I think about it, I find your statement above condescending and short sighted. Since you're running for Congress, you might want to consider looking into the number of single parent families who rely on child care in the district you want to represent.

How does government-subsidized daycare help us improve the next generation? Can we just ship our children to childcare factories, and expect to reap educated, creative, compassionate, and engaged individuals who are confident in their abilities to effect positive change in the world?

Of course we can't ship them to childcare factories. How facetious. The reality is that some children will be in child care whether you think that home is the best place for them or not. Some of them will be there because both parents have chosen to work, some of them will be there because both parents have to work, and some of them will be there because they have only one parent responsible for them, and that parent has to work. Government subsidized child care helps parents afford the quality that is necessary to be sure that the children are in safe, nurturing environments, cared for by educated, loving teachers. The early years (birth through five) are the only years not heavily subsidized by the government already. The state of NC, through the Child Care Development Block Grant and Smart Start funds provides direct subsidy to parents whose income does not allow for them to pay for the child care they need. Through those same funds, Quality Improvement and Enhancement efforts are ongoing. This is necessary because parent fees do not support the operation of a child care center any more than tuition supports the operation of a university.

I'm not saying that moms and dads shouldn't have every opportunity to self-actualize and reach their career goals. I am saying that we've all but removed the choice for many parents to raise their children.

Well, it's reality. We have to deal with it, rather than wring our hands and wish it weren't like that. I would have gladly worked a schedule that allowed me to be at home when my son was at home. I didn't have that choice, and neither do millions of parents. Should they be abandoned by their government because you don't think it should be that way?

We've sacrificed parents as the primary instrument of social progress on the altar of a declining paper currency -- folks are on a treadmill, working harder and harder just trying in vain to keep up.

Nope. I disagree. Even though my son went to child care, school, and after school programs, I can tell you with certainty that I have had the most influence on his life, not those programs. Anyone who meets him can tell you that.

It's a parental choice. You can be involved in your child's life, or not. It's got nothing to do with child care or currency, it's parenting. My son is 18, about to graduate from high school, and I'm going to brag. He's smart, he's progressive, and he's getting ready to major in political science at Guilford College. That's another place where government subsidies are going to help. He's received a grant, and he'll be taking out student loans guaranteed by the government.

Unless we understand how our government's ability to silently create new money is killing us, we'll be treating the wrong disease indefinitely.

I know that's your big issue. Child Care and education is mine. I'm going to push for government subsidies for both for as long as I have breath. If by some chance you're able to defeat David Price, I'll be after you for that, so get ready.
Be the change you wish to see in the world. --Gandhi
Pointing at Naked Emperors

My primary concern is the dying "middle class"

I would have gladly worked a schedule that allowed me to be at home when my son was at home. I didn't have that choice, and neither do millions of parents. Should they be abandoned by their government because you don't think it should be that way?

I don't object to state and local governments subsidizing education or child care, and providing safety nets. Those are appropriate roles for state and local governments, as well as charitable organizations. It's just not the role of the federal government.

Why is that distinction so critical? When the federal government gets involved, well... since Washington has the unique ability to print money (unlike our state, which can only tax or borrow), its trying to "help" actually pushes prices up.

While I don't believe there's an "Occam's razor", or one single cause, to these social problems, there's an important consequence of Washington's involvement that is poorly understood, and seldom discussed -- that's the nature of our monetary and banking system itself:

http://blog.lawsonforcongress.com/2008/03/14/dont-talk-about-the-dollar/

(Anyone know how I can embed a picture in a comment?)

You are justifiably proud of your son, and he'll do great things at Guilford College and beyond. But federal government grants and taxpayer-subsidized loans have thrown more paper money at higher education. What happens when the banker passes out new money during a game of Monopoly? Are people willing to pay higher prices for property? Of course. Just check out the real estate bubble from 2001-2006 for another real-life example.

So what have prices for college education done now that the federal government is "helping"? Check this out (straight from the BLS's own data, 1978 to present):

http://blog.lawsonforcongress.com/wp-content/uploads/2008/05/collegetuition.png

College tuition is rising WAY faster than the rate of overall inflation. Kind of like healthcare, and for the same reason.

So, this perverse system of the federal government "helping" by throwing money at college education means that it's now REALLY hard to save for, and work your way through, college (community colleges and good public systems like NC excepted).

More and more students are forced to borrow money to get through school, and we're minting new college and professional school graduates with debt that needs to be serviced right after graduation. So you're then enslaved and working for The (Wo)Man from the moment you graduate.

Believe me, I know. I didn't count the cost of my education until it was too late -- between an undergrad and medical degree, I was way underwater and too economically stupid to realize how dumb I had been. It was a hard lesson to learn.

Anyway, I don't mean to imply that two-parent families are the norm, or that both parents shouldn't be working if that's how they're making their contribution to society. My concern is that our monetary system is putting American wage-earners under tremendous pressure as wealth is confiscated through the "inflation tax". As a result, many single- and two-parent families are having to work harder for the same purchasing power, causing more family stress and leaving less time at home to make an impact in their childrens' lives.

BJ

William (B.J.) Lawson
Congressional Candidate, North Carolina's 4th District

William (B.J.) Lawson, M.D.
Congressional Candidate, North Carolina's 4th District

I understand you much more clearly now, BJ

I see how you define the problems with the system - and it's not far off from how I see it.

How would you change the system without damaging the families or denying children and young adults the opportunity for a decent education?

Be the change you wish to see in the world. --Gandhi
Pointing at Naked Emperors

I think we're already

damaging families and denying children and young adults the opportunity for a decent education. I'd prefer we stop doing that. :-)

So how do we stop damaging families through accelerating inflation? Well, we need to recognize that our federal government cannot "help" us any more. Washington has been borrowing and printing too much money in the first place -- we have a federal government we cannot afford, and further efforts to "help" are only making problems worse.

There's no silver bullet, and it's not an easy message to deliver, but we need to recognize that prosperity results from people creating value in their communities, not the federal government providing grants, loans, and other sources of "money". You can't "print" wealth, as much as we like trying.

Here are some thoughts on the economy, and inflation. At one point I thought the FairTax would be a step in the right direction, but I'm now questioning that hypothesis in our inflationary environment. Right now, we're seeing stagnant wages and rising prices. Moving to a national sales tax would compound rising prices by adding a tax on top of them -- so the average American would be paying more tax on necessities in the face of stagnant income. Not fun.

My conclusion is that our only option is to move towards a federal government that we can actually afford. We have a road map for that journey, our United States Constitution, that sets out specific areas of responsibility for the federal government while leaving everything else to be worked out within our local communities.

Education is a good example of something where the federal government causes more harm than good. We spend over $60 billion feeding a Department of Education in Washington. North Carolina gets back about $1 billion in federal educational funding, and those federal dollars come with lots of strings attached that reduce local control and accountability.

I think we could do a better job educating our children if we relied on local ingenuity, and provided more choices for our students with different needs. Here are some good examples of programs that are making a huge difference locally (and nationally) with no federal funding or oversight whatsoever:

http://blog.lawsonforcongress.com/2007/12/13/the-finest-middle-school-in-north-carolina/

http://blog.lawsonforcongress.com/2008/01/17/celebrating-blue-ribbon-mentor-advocate/

826 Valencia/Dave Eggers <-- AMAZING VIDEO!

In other words, we can do this. Folks who expect great things to happen when we "outsource" social progress to Washington are typically disappointed. We need to take responsibility for our own community, to develop and support local solutions for our local problems.

I'm not going to pretend that New Zealand has all of the diversity and challenges that we do, but they went through a significant educational transition, with pretty good results:

New Zealand had an education system that was failing as well. It was failing about 30 percent of its children - especially those in lower socio-economic areas. We had put more and more money into education for 20 years, and achieved worse and worse results.

It cost us twice as much to get a poorer result than we did 20 years previously with much less money. So we decided to rethink what we were doing here as well. The first thing we did was to identify where the dollars were going that we were pouring into education. We hired international consultants (because we didn’t trust our own departments to do it), and they reported that for every dollar we were spending on education, 70 cents was being swallowed up by administration. Once we heard this, we immediately eliminated all of the Boards of Education in the country. Every single school came under the control of a board of trustees elected by the parents of the children at that school, and by nobody else. We gave schools a block of money based on the number of students that went to them, with no strings attached. At the same time, we told the parents that they had an absolute right to choose where their children would go to school. It is absolutely obnoxious to me that anybody would tell parents that they must send their children to a bad school. We converted 4,500 schools to this new system all on the same day.

But we went even further: We made it possible for privately owned schools to be funded in exactly the same way as publicly owned schools, giving parents the ability to spend their education dollars wherever they chose. Again, everybody predicted that there would be a major exodus of students from the public to the private schools, because the private schools showed an academic advantage of 14 to 15 percent. It didn’t happen, however, because the differential between schools disappeared in about 18-24 months. Why? Because all of a sudden teachers realized that if they lost their students, they would lose their funding; and if they lost their funding, they would lose their jobs. Eighty-five percent of our students went to public schools at the beginning of this process. That fell to only about 84 percent over the first year or so of our reforms. But three years later, 87 percent of the students were going to public schools. More importantly, we moved from being about 14 or 15 percent below our international peers to being about 14 or 15 percent above our international peers in terms of educational attainment.

In other words, their success was not getting rid of government, it was making government (or governance of their schools) as local, and as accountable, as possible.

To the extent we can encourage folks to step forward and make a difference in our community, we can be successful. We need to stop blaming politicians, and start holding them accountable (at every level - federal, state, and local). We need more people outside of politics to go into politics -- to serve, instead of to be served.

No easy answers, but I believe it's a journey... not a destination.

William (B.J.) Lawson
Congressional Candidate, North Carolina's 4th District

William (B.J.) Lawson, M.D.
Congressional Candidate, North Carolina's 4th District

So in a nutshell, you're for vouchers.

*Because all of a sudden teachers realized that if they lost their students, they would lose their funding; and if they lost their funding, they would lose their jobs.

The reason those schools did well was not because the teachers realized they would lose their funding and ergo their jobs, it was because the schools received equal funding. That can be done without children being carted all over the state to schools instead of staying in their own neighborhood and going to school with the children they are growing up with. It doesn't take a rocket scientist (or a brain surgeon) to figure that out.

Stop blaming teachers. It isn't their fault that the some schools are failing. T

I like the idea of a board of trustees for each school. I don't like the idea that the board is made up only of parents. That's like having a board of trustees for a hospital with no one who has any understanding of the medical profession on it; it's stupid. The board should have teachers from the school as well as parents. Believe it or not, teachers are professionals, at least the ones who actually have education degrees, who understand child and adolescent development and learning, who can be a valuable partners to parents in the educational process. What you've posted above would only, in my opinion, serve to widen the divide between those two groups, and make that partnership even harder.

Be the change you wish to see in the world. --Gandhi
Pointing at Naked Emperors

I can't blame teachers,

I'm married to one. (Well, in the same sense that she's married to a physician -- at this point she's only teaching our children, and I'm not practicing medicine.) My wife taught 4th grade @ E.K. Powe in Durham while I was in medical school. I have a ton of empathy for educators, especially in the current environment.

We experienced the lunacy of getting to the end of the year at Powe, and needing to buy classroom essentials like paper and pencils out of my student loan funds and her teacher's salary. Yet Durham's per pupil expenditures was one of the highest in the state. Where was the money going? No idea... but not to the classrooms.

I'm not saying that the New Zealand model is perfectly applicable, but more local control and local accountability seems like a good thing. You may not be giving parents and interested members of the community enough credit, though. Given that my wife is a certified teacher, she'd be a good candidate to serve on the board for our local elementary school. Additionally, private schools like Durham Nativity School who serve at-risk students specifically recruit folks for their board who can help with the nuanced needs of their environment. Ultimately, it seems like the ideal governance framework for a school will depend on the needs of the school, and the students that it's serving -- it's tough to generalize and define in advance.

I do like school choice, and presumably vouchers are one way to give choice to parents and students. Can you imagine going to a school set up in the model of 826 Valencia? We already have some pretty innovative charter schools, but why must we fight a cap that restricts their growth? Wouldn't it be a good thing to have different educational options sprouting up where the children, and the needs, are?

BJ

William (B.J.) Lawson
Congressional Candidate, North Carolina's 4th District

William (B.J.) Lawson, M.D.
Congressional Candidate, North Carolina's 4th District

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William (B.J.) Lawson, M.D.
Congressional Candidate, North Carolina's 4th District

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William (B.J.) Lawson
Congressional Candidate, North Carolina's 4th District

edited for image size. Linda

Thanks, Linda -- much better.

William (B.J.) Lawson, M.D.
Congressional Candidate, North Carolina's 4th District