Meet the Press Nerd Facts

Meet the Press Transcript – December 7, 2014

Chuck Todd - Meet the PressHOST CHUCK TODD:

Nerd screen time about Congress and wealth. The majority of Americans, of course, think members of Congress are out of touch with average citizens. 81%, according to Gallup’s most recent survey. In fact, average Americans don’t think members of Congress understand their needs or concerns.

And that members of Congress are too beholden to special interests. Well, there’s a big reason why our representatives here in Washington appear to have a hard time relating to most of you. And it starts with a massive wealth gap. Let’s take a look at the numbers. First of all, members of Congress make a lot more money than the average American.

Typical household income, $54,000 annually. The annual salary for each member of Congress, it’s nearly $175,000, three times as much. And oh, by the way, that’s not household income. This doesn’t include spousal income. You included that, it’s even much higher. Not surprisingly, members of Congress are also doing better than average Americans when it comes to seeing their wealth grow.

On average, media net worth for average Americans grew just under 4% annually from 2004 to 2012. In that same period of time, members of Congress saw their income increase at a 15% clip annually. The result? By 2013, the average 55 to 65 year old, that’s about the average age of a member of Congress, had a net worth of just over $165,000.

And that includes real estate holdings. The average net worth for a member of Congress? Just over a million dollars. And that does not include real estate holdings. They don’t have to report that on their forms. If they did, that number would even be higher. All of which makes this next figure not so surprising after you see all these numbers. And that is, millionaire households.

Overall, nearly 6% of households in America are millionaires. And that number’s up, by the way. Members of Congress? Over half of them, remember there are 535 of them, over half of them are millionaires. So you wonder why the economy, income inequity, all of these issues, you don’t feel like Congress quite understands the urgency of it, this is all you need to know. Half of them are millionaires. We’ll be right back.

Senator Bernie Sanders is An Outstanding Candidate for President

Senator Bernie Sanders is viewed by many as a communist or at the very least a socialist.  Read his 12 initiatives below and tell me who would disagree with his ideas.

I am looking for a presidential candidate that will provide a set of ideas or goals that are achievable.  Senator Bernie Sanders, the independent from Vermont who caucuses with the Democrats has offered his goals in an easy to understand declaration.  I agree with his goals.  Despite what others may call him, I identify him as a real progressive who wants to help the poor and middle live better lives.  Both the Democrats and Republicans should co-opt these ideas. 

Following is a copy of his 12 initiatives to help America’s middle class.

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Bernie SandersThe American people must make a fundamental decision. Do we continue the 40-year decline of our middle class and the growing gap between the very rich and everyone else, or do we fight for a progressive economic agenda that creates jobs, raises wages, protects the environment and provides health care for all? Are we prepared to take on the enormous economic and political power of the billionaire class, or do we continue to slide into economic and political oligarchy? These are the most important questions of our time, and how we answer them will determine the future of our country. The long-term deterioration of the middle class, accelerated by the Wall Street crash of 2008, has not been pretty. Today, we have more wealth and income inequality than any major country on earth. We have one of the highest childhood poverty rates and we are the only country in the industrialized world which does not guarantee health care for all. We once led the world in terms of the percentage of our people who graduated college, but we are now in 12th place. Our infrastructure, once the envy of the world, is collapsing. Real unemployment today is not 5.8 percent, it is 11.5 percent if we include those who have given up looking for work or who are working part time when they want to work full time. Youth unemployment is 18.6 percent and African-American youth unemployment is 32.6 percent. Today, millions of Americans are working longer hours for lower wages. In inflation-adjusted dollars, the median male worker earned $783 less last year than he made 41 years ago. The median woman worker made $1,337 less last year than she earned in 2007. Since 1999, the median middle-class family has seen its income go down by almost $5,000 after adjusting for inflation, now earning less than it did 25 years ago. The American people must demand that Congress and the White House start protecting the interests of working families, not just wealthy campaign contributors. We need federal legislation to put the unemployed back to work, to raise wages and make certain that all Americans have the health care and education they need for healthy and productive lives. As Vermont’s senator, here are 12 initiatives that I will be fighting for which can restore America’s middle class.

1. Rebuilding Our Roads

We need a major investment to rebuild our crumbling infrastructure: roads, bridges, water systems, waste water plants, airports, railroads and schools. It has been estimated that the cost of the Bush-Cheney Iraq War, a war we should never have waged, will total $3 trillion by the time the last veteran receives needed care. A $1 trillion investment in infrastructure could create 13 million decent paying jobs and make this country more efficient and productive. We need to invest in infrastructure, not more war.

2. Reversing Climate Change

The United States must lead the world in reversing climate change and make certain that this planet is habitable for our children and grandchildren. We must transform our energy system away from fossil fuels and into energy efficiency and sustainable energies. Millions of homes and buildings need to be weatherized, our transportation system needs to be energy efficient and we need to greatly accelerate the progress we are already seeing in wind, solar, geothermal, biomass and other forms of sustainable energy. Transforming our energy system will not only protect the environment, it will create good paying jobs.

3. Creating Jobs

We need to develop new economic models to increase job creation and productivity. Instead of giving huge tax breaks to corporations which ship our jobs to China and other low-wage countries, we need to provide assistance to workers who want to purchase their own businesses by establishing worker-owned cooperatives. Study after study shows that when workers have an ownership stake in the businesses they work for, productivity goes up, absenteeism goes down and employees are much more satisfied with their jobs.

4. Protecting Unions

Union workers who are able to collectively bargain for higher wages and benefits earn substantially more than non-union workers. Today, corporate opposition to union organizing makes it extremely difficult for workers to join a union. We need legislation which makes it clear that when a majority of workers sign cards in support of a union, they can form a union.

5. Raising the Wage

The current federal minimum wage of $7.25 an hour is a starvation wage. We need to raise the minimum wage to a living wage. No one in this country who works 40 hours a week should live in poverty.

6. Pay Equity

Women workers today earn 78 percent of what their male counterparts make. We need pay equity in our country — equal pay for equal work.

7. Making Trade Work for Workers

Since 2001 we have lost more than 60,000 factories in this country, and more than 4.9 million decent-paying manufacturing jobs. We must end our disastrous trade policies (NAFTA, CAFTA, PNTR with China, etc.) which enable corporate America to shut down plants in this country and move to China and other low-wage countries. We need to end the race to the bottom and develop trade policies which demand that American corporations create jobs here, and not abroad.

8. Cutting College Costs

In today’s highly competitive global economy, millions of Americans are unable to afford the higher education they need in order to get good-paying jobs. Further, with both parents now often at work, most working-class families can’t locate the high-quality and affordable child care they need for their kids. Quality education in America, from child care to higher education, must be affordable for all. Without a high-quality and affordable educational system, we will be unable to compete globally and our standard of living will continue to decline.

9. Breaking Up Big Banks

The function of banking is to facilitate the flow of capital into productive and job-creating activities. Financial institutions cannot be an island unto themselves, standing as huge profit centers outside of the real economy. Today, six huge Wall Street financial institutions have assets equivalent to 61 percent of our gross domestic product – over $9.8 trillion. These institutions underwrite more than half the mortgages in this country and more than two-thirds of the credit cards. The greed, recklessness and illegal behavior of major Wall Street firms plunged this country into the worst financial crisis since the 1930s. They are too powerful to be reformed. They must be broken up.

10. Bringing Health Care to All

The United States must join the rest of the industrialized world and recognize that health care is a right of all, and not a privilege. Despite the fact that more than 40 million Americans have no health insurance, we spend almost twice as much per capita on health care as any other nation. We need to establish a Medicare-for-all, single-payer system.

11. Ending Poverty

Millions of seniors live in poverty and we have the highest rate of childhood poverty of any major country. We must strengthen the social safety net, not weaken it. Instead of cutting Social Security, Medicare, Medicaid and nutrition programs, we should be expanding these programs.

12. Stopping Tax Dodging Corporations

At a time of massive wealth and income inequality, we need a progressive tax system in this country which is based on ability to pay. It is not acceptable that major profitable corporations have paid nothing in federal income taxes, and that corporate CEOs in this country often enjoy an effective tax rate which is lower than their secretaries. It is absurd that we lose over $100 billion a year in revenue because corporations and the wealthy stash their cash in offshore tax havens around the world. The time is long overdue for real tax reform.

Corruption is Epidemic Throughout the World

My daughter believes that corruption is everywhere. She believes that even trials are corrupted. That, she says, is the reason the O.J. Simpson murder trial resulted in a Not Guilty verdict. That explains the reason that there was no indictment in the death of Michael Brown in Ferguson, Missouri. Elections? All fixed. Corruption is not just in America but everywhere. After all Oscar Pistorius, the admitted killer of a girl friend in South Africa, was sentenced to five years in jail for the killing. Mexican President Enrique Pena Nieto lives in a $7 million home that is owned by a company that was recently awarded a public contract to build a high-speed railway from Mexico City to Queretaro, a project estimated to cost close to four billion dollars.

How do countries rank on corruption?

An article in the Los Angeles Times this past December 2 brought to my attention that there is an organization that tries to evaluate the level of corruption among nations. Transparency International has made the effort to evaluate and compare whatever data is available. Clearly much of the information is subjective. Some of the data must be disappointing to some people and nations.

The United States is ranked in 17th place among 150 nations. Denmark and New Zealand are seen as the least corrupt countries. Canada is in 10th place. Mexico is tied at 103rd place with Bolivia, Moldova, and Niger. China is in 100th place.

There is no simple answer to corruption. It seems talking about it and making everyone aware of its evil will help to reduce the occurrence. Sadly it will probably always be there.

Bad Parrot

A young man named John received a parrot as a gift. The parrot had a bad attitude and an even worse vocabulary.

Every word out of the bird’s mouth was rude, obnoxious and laced with profanity. John tried and tried to change the bird’s attitude by consistently saying only polite words, playing soft music and anything else he could think of to ‘clean up’ the bird’s vocabulary.

Finally, John was fed up, and he yelled at the parrot. The parrot yelled back. John shook the parrot, and the parrot got angrier and even more rude. John, in desperation, threw up his hands, grabbed the bird and put him in the freezer.

For a few minutes, the parrot squawked and kicked and screamed. Then suddenly there was total quiet. Not a peep was heard for over a minute.

Fearing that he’d hurt the parrot, John quickly opened the door to the freezer. The parrot calmly stepped out onto John’s outstretched arms and said, “I believe I may have offended you with my rude language and actions. I’m sincerely remorseful for my inappropriate transgressions, and I fully intend to do everything I can to correct my rude and unforgivable behavior.”

John was stunned at the change in the bird’s attitude.

As he was about to ask the parrot what had made such a dramatic change in his behavior, the bird spoke-up, very softly, “May I ask what the turkey did?”

California Bullet Train is a Path to the Future

Driving from San Francisco to Los Angeles is a dreary six hour experience. Most people travel inland to use Interstate 5. It is a straight and boring ride. In the summer the heat in the Central Valley and the drive to the top of the Tehachapi Mountains (called the Grape Vine) causes many cars to overheat. The drive from Los Angeles does not include the steep climb but isn’t any fun either.

Today the flight from Los Angeles International Airport (LAX) to San Francisco International Airport takes about 1½ hours.  Airplane seats are narrow, poorly padded, and there is no leg room.  The time for check in and clearance through security is about 1½ hours. American Airlines recommends check in “At least 90 minutes prior to departure when checking bags.” Travel to LAX is about 1½ hours. Thus a 1½ hour flight requires 4½ hours. The flight costs $124.00 round trip. Currently the travel time by rail is about 12 3/4 hours.   Obviously train travel is not acceptable to most people as the train does not actually go into San Francisco. The last leg of the trip is a bus ride from Emeryville across San Francisco Bay.

The Bullet Train project plans that by 2029 the system will run from San Francisco to the Los Angeles basin in under three hours at speeds capable of over 200 miles per hour. If the train cost is competitive with air travel we will see a new era for travel. We will be able to reach the center of each city without a special effort. The airlines will cut their fares to continue drawing patrons.

Despite the naysayers, I believe Governor Jerry Brown is correct in perusing this project.

CA Bullet Train Map

The United States is Home to Millionaires

This is one topic that will not be discussed in the campaign for president in 2016. The U.S.A. is a home for millionaires. There are more in this country than any other nation in the world. The opportunity to become a millionaire is the reason so many people look for every way to enter this nation.

The Boston Consulting Group (BCG) posted this interesting article about wealth in the world this past June titled “Global Wealth 2014: Riding a Wave of Growth.”

Even as the income discrepancy between the average American and the top income earners has become more extreme the number of millionaires around the world has risen to new heights the numbers of millionaires in the United States has grown even more. BCG states: “As the debate over the global polarization of wealth rages on, one thing is certain: more people are becoming wealthy. The total number of millionaire households (in U.S. dollar terms) reached 16.3 million in 2013, up strongly from 13.7 million in 2012 and representing 1.1 percent of all households globally.”

MIllionaires Chart

The number of millionaires in the United States exceeds the total of the next 13 nations combined with 7,135. Among the ultra-rich (families with $100 million in wealth) shown in the third column above, once again the United States has more than four times as many as the next nation (United Kingdom).

The inflow of immigrants to the United States isn’t just the poor. The wealthy are doing their very best to grab a piece of the American pie. Businessweek had an article in the October 20-26 issue about Arcadia, California – a suburban community of Los Angeles that has been inundated with wealthy Chinese buying homes and building mansions there.

Arcadia CA

There is a possibility that you can be a millionaire in the United States. It’s easier than almost any other country in the world. So that’s why we won’t be changing the laws pertaining to millionaires. We won’t penalize you for becoming one too! It is what makes America great. It’s everyone’s goal. You don’t have to know anyone to make it happen. Anyone can be the next Steve Jobs, Bill Gates, or Sara Blakley.

Solving the Illegal Immigration Issue

As has been said by so many other people; we are all immigrants except American Indians.

Obama on immigration-reaction-20141120-thumbnailThere is a difference between President Obama’s granting of legal status to the undocumented and the amnesties of the past. The president’s executive action is only effective as long as he is president. He has the authority to reduce the government’s pursuit of illegal aliens. That is what he is doing.

His reason? His legacy. He obviously sees his action as a progressive solution to a problem that has existed since 1986 when President Reagan did sign an amnesty law passed by Congress.

The 5 million or so people who might be effected by Obama’s executive order are aliens who have held jobs and have families here for more than five years. We allowed these people to obtain jobs. We rarely punished employers who are fully aware that they have been hiring undocumented aliens. We did these things because those illegal aliens took jobs that most Americans won’t. All this because American businesses would not pay wages that most Americans will accept. Construction workers, farm laborers, and other blue collar jobs are dirty, dangerous, or in some other way are not acceptable to Americans. Illegal aliens are filling those jobs.

The GOP continues to be the party of NO. They have objected to every proposal made by Obama. With no ideas of their own the Republicans will provide the grid lock that has existed for the past two years.

For the sake of the nation the Republicans in the House of Representatives should approve the Senate passed immigration bill.

The Gap Between the Wealthy and the Middle Class

The political parties have missed the primary message of the November 4 election. There was a poor turnout because neither party addressed the issue that most Americans care about. My opinion: A growing economy ought to be the primary target for both parties.   The graph below developed by the Economic Policy Institute shows increased productivity without increased remuneration but the EPI discussion does not offer any evaluation as to cause. They leave the evaluation to others. Those others are the commentators and economists who just might have a political agenda.

Real Hourly Growth

My take: Higher productivity is not the outcome of employees working harder or smarter. It is the result of new technologies. Those technologies are the consequence of new tools and new software. Those technologies lower the needed manpower. A good example is the elimination of ticket takers/payment clerks as you leave a parking structure. They are now being replaced with automated systems. Those same systems will eliminate order takers at McDonald’s, etc. Those technologies enable machine shops to complete projects faster with less scrap and higher quality.

What will we do with all the people who no longer have jobs? That is the question that politicians can’t answer. Those illegal aliens? Their jobs are on the line too. Capitalism in a free enterprise society translates to hiring the least expensive labor. Of course politicians don’t want to talk to the electorate about this issue.

Is the solution more subsidies and aid for the “middle class”? That appears to be the only solution today. Neither political party wants to admit we have a problem with no apparent solution.

Do not expect anyone running for president in 2016 to say anything about this issue. You will hear discussion on illegal immigration, Russian threats to Eastern Europe, the challenges in Middle Eastern Islamic nations (no boots on the ground), and of course Obama Care. No one will be talking about the gap between the wealthy and the middle class. I hope I am wrong.

Russia Resuming Cold War Behavior

President Obama belittled Mitt Romney for his prediction over the course of the 2012 campaign, Romney repeatedly called Russia “our number one geopolitical foe.”  Then came this debate confrontation.

 

Now in response to NATO’s “anti-Russia inclinations,” the Kremlin will resume its Cold War-era practice of sending long-range bombers to patrol the western Atlantic and eastern Pacific.  The flights, which will extend to the borders of U.S. territorial waters, follow a markedly more aggressive air defense posture by Russia in the eight months since it seized and annexed Ukraine’s Crimea region in March, according to European strategic analysts.

 

Newsweek reports:
“Russia has announced plans to build a drone base for military reconnaissance in a town just 420 miles off mainland Alaska and just over 300 miles off the US state’s St Lawrence Island, Russia’s state news agency reported on Thursday.”

“The command of the eastern military district in charge of the military development of the Arctic zone has moved forward with plans to form an unmanned aerial vehicle division,” Alexandr Gordeev, spokesperson for the district said.”

Hungarian leadership is now saying that it feels a kinship with Russia.  Russian speaking Latvians are leaning towards Russia. Russia does not need to be communist to stand as the opposition to western style democracy.  Mikhail Gorbachev recently warned of a renewal of the Cold War.

Barack Obama as leader of a new Cold War is very frightening.  I am looking forward to a new tough American leader.