Happy (forthcoming) 4th of July

American Flag & The Washington MonumentSince America is celebrating her birthday a day early, let’s do the same.  Happy 233rd birthday, America!  You’re this many fingers old.  But a mere twenty-one months earlier, even George Washington didn’t think much about the idea of seceding from Britain.  In a letter to British Captain Robert Mackenzie he wrote on October 9, 1774 of independence:

“…that no such thing is desired by any thinking man in North America; on the contrary, that it is the ardent wish of the warmest advocates for liberty, that peace and tranquility, upon constitutional grounds, may be restored, and the horrors of civil discord prevented…”

It’s not that Washington was content with the way things were, but the differences had not yet risen to the point where he felt they were irreconcilable.   The Powell doctrine didn’t exist back then.  The founders entered into a war not knowing whether they could win it.  England’s soldiers were far from home, however, and France was looking for new ways to stick a finger in the King’s eye.  Perhaps fortune and geography favored the foolish, and yet here we are.  Why did they fight?  Perhaps they felt it was simply the right thing to do.

It is often said that America’s revolution was one of ideas and not merely one of force.  Those ideas had strong ideological grounding from the likes of John Locke, upon whom Jefferson based the preface of the Declaration of Independence.  It was he who wrote that man was entitled to life, liberty, and property.

The real revolution did not end in 1781, however.  It continues today as our country struggles through recession.  Back then, the idea that we could ruin the entire world through global warming or nuclear war would have been considered laughable, and yet today it is understood by all but the most foolish.  Back then black men counted  as property, as did women and children.  Today a black man is president, and America’s voice to the rest of the world is a woman.

Perhaps the next revolution lies in the orthodoxy of economics; the idea that production can sustain us.  If production sustains us at the cost of the environment, it does so at the cost of our children.  How we value the earth and future generations is something our current model does so poorly, that to this day coal production destroys land and pollutes the air.

Perhaps the next revolution will be how we as a world community live together.  Although Roosevelt and Truman worked to form the United Nations in 1945, the institution has done a poor job at preventing wanton attacks on civilians, despotism, and adventurism.

Perhaps the next revolution is yet within America, on how we govern ourselves.  As I look at the fiasco that faces the people of California I wonder what it will take to undo the tyranny of the minority of people who are unable to cope with the simple notion that you get what you pay for.  If government requires the consent of the governed, which is really what King George III lost, doesn’t it also require at least some amount of common ground?  Where is that common ground today?  This is not just a challenge for politicians.  Californians themselves must agree on what is important to fund and what is not.

So Happy Birthday America!  Now let’s get back to work.

Latest GM SUV: Big and 30MPG

I don’t have all the details, but a quick look at this article shows that GM’s plight was, at least in part, avoidable.  The base model comes with a 182 horse power 2.4 liter engine, and gets you 30 mpg.  There is no reason in the world that GM could not have produced this vehicle two years ago.  In doing so, they would have seen demand shift from some of their other lines, but also from Ford, Toyota, and Dodge.  In addition, they could have easily picked up some gas guzzler trade-ins.  Why did they wait?  It’s quite simple: they have absolutely no foresight.  The GM motto could be “what works today will work tomorrow”.  Of course, that motto doesn’t work.

This to me supports the Obama position that if these guys want help they have to change.  I remain uncomfortable about the government running a company, and when this administration can force out long time CEO Rick Wagoner, that is what is happening.

Where then is the balance?  When should the government not use its coercive power when it doles out money to broken companies?  When should it let them fail?  And what does one do with the thousands upon thousands of individuals who have been mishandled by bad leadership?  I don’t know, but somewhere somehow they have to shoulder some of the burden.  Some of this is their poor decision to tie their fates to people like Wagoner, who really did need to go.

Time to change time

Welcome to International “Screw up your calendar week”, otherwise known as the changing of the clocks to Daylight Savings Time (DST) in America.  For those elsewhere, or if you happen to live in Arizona, Hawaii, or certain parts of Indiana, or if you happen to live elsewhere in America and have appointments with those living in AZ, HI, or IA, or anywhere else in the world, be sure to check that your appointments haven’t shifted by an hour.  For the next two weeks, though, America will be one hour closer to Europe.  Oh, and then check again in two weeks.

This debacle is brought to you by the last Republican U.S. Congress who somehow thought that shifting DST would actually save energy.  It didn’t, according to one blog and a report on NPR.  Whatever.

My beef with this semi-annual nonsense is simply this: don’t change the rule again.  Doing so causes chaos to everyone’s schedules, requiring software updates on numerous platforms.  It’s a mini-Y2K bug that gets periodically legislated into our programs.

Misadventures with taxes

I began my tax preparation this year with my mind on President Obama looking to tax the wealthiest Americans a bit more to pay for a reduction in taxes on the rest of us.  For expatriates, taxes are a sore subject.  American expatriates, unlike citizens of just about any other country, are required to file tax returns no matter where we live in the world, an we have to claim back foreign taxes, as either a credit or a deduction.  The notion behind all of this is that you can’t simply move off shore to avoid paying U.S. taxes.  Fair enough, except that of course you don’t get to avail yourself of nearly any of the services you are paying for.

The way this works is that we get a deduction for housing and a credit for tax paid.  In the end the idea is still that if you’re not working in the U.S., you shouldn’t have to really pay much. The deduction for housing was limited based on where you lived. This year, we in Europe are treated to an extra insult.  Because the American dollar did so poorly overall in 2008, we all expected that the Department of Treasury would adjust the housing limit accordingly – but they didn’t.  That amounts to about a 10% additional tax on us.  And of course there are penalties for not prepaying based on the currency fluctuation.

I might not mind so much, except that as an American citizen I still cannot buy mutual funds, just because I live outside the U.S.  There are many other services I don’t get, that perhaps I would enjoy.  Like courtesy at the American consulate in Zurich.

Should I renew the WSJ?

I have enjoyed the Wall Street Journal online edition for many years.  Their reporting was poignant, accurate, and generally kept within the scope of how a particular effort would have some economic impact on peoples’ lives.  There weren’t excessive numbers of fluffy stories, and the right wing bent of the editors was largely kept to the editorial page.  The web site itself wasn’t flashy (pun intended), and gave me a pretty good understanding of the important events of the day.

Seemingly with the takeover of the News Corporation, however, the web site has taken a turn for the worse.  With more flash, more video, and more interactive grahics, it has become hard to actually find the news stories.  With me reading less and less, I wonder, therefore, why I should pay more and more.  The price of the Online Journal this year is going up by a honking 50%.

With the former editor of the Wall Street Journal under the previous ownership now at the Washington Post, I wonder if I should read that web site instead.  And so my question to you; what is your primary news source?  And what is your primary online news source in print?  Aside from the WSJ, I also read the New York Times and Google News.  Of course, one can always count on CNN for the “Man bites dog” stories…