The so called Bush Tax Cuts will expire at the end of the year and the Democratic controlled congress should let them expire with the exception of those earning under $250,000.00 a year. As usual, the Republicans are using the issue as a wedge to divide the people by saying it will be a tax increase for the wealthy if let to expire.
Former President Clinton would have a field day with the Republicans on this issue and would point out that the legislation was passed by the Republican controlled congress who put a sunset date of December 31, 2010, which means the tax rates would revert back to the previous level. If that is a tax increase it is the Republicans tax increase, not the Democrats.
Everything the Bush and Republican controlled congress did turned out to be a financial disaster for the middle class, the economy, for the creation of new jobs and was catastrophic in creating record federal deficits and debt for the country for eight straight years. Every major expenditure of the Bush administration was unfunded, including the prescription drug benefit that cost the government $1.2 trillion over 10 years and is still being paid for by the people and the Obama administration. That benefit also gave the people the donut hole that Obama's health care legislation closes.
Trickle down economics during the Bush years gave the country and its people the worst economy and loss of jobs since the great depression. Trickle down economics and unfunded expenses are trade marks of the conservative Republican ideology to bankrupt the federal government and deny the government needed revenue to finance programs that really matter and make a difference for the country and its people. That says it all.
Saturday, August 28, 2010
Friday, August 20, 2010
The Political Wisdom of President Clinton
Although the former President has been out of office almost 10 years, President Obama and the democratic party are facing the same conservative republican rhetoric that Clinton faced. Obama and the party are not dealing with it as well as Clinton did and infact Clinton was so effective against conservatives they had to resort to impeachment.
Clinton was able to relate to the people how conservatives could only win elections by dividing the country using bogus wedge issues. The people understood when Clinton said the conservatives could not debate the issues because they had no record of accomplishments. Almost 10 years later the conservatives are still using the same tactics. Obama is good when he answers the conservatives but he does not do it often enough. He has to step up his challenge to the republican party and its so called conservative leaders inside and outside of Congress.
The democratic party itself does not do a good job in responding to the conservative ideology of division. Worst is the fact that the voting public seems not to remember how conservatives try to divide the country and as a result nothing gets done. Many have joined the "tea party" looking for a savior when all they need to do is remember the republican party's lack of any accomplishments and vote accordingly.
People in the news media don't get it either, especially TV news. They still promote the republican talking points that divide the country over issues that are bogus. They do not have a record of positive reporting on the issues that really affect the country and its people. The conservative networks like Fox News are way over the top and many follow the script of being unAmerican. The are beyond help.
The republican party with their conservative ideology have no shame or intention of being good Americans and facing the issues. Its hell when you have no record to run on or idea's that serve the country and its people's needs. Its even worse when you have no character or courage. That says it all.
Clinton was able to relate to the people how conservatives could only win elections by dividing the country using bogus wedge issues. The people understood when Clinton said the conservatives could not debate the issues because they had no record of accomplishments. Almost 10 years later the conservatives are still using the same tactics. Obama is good when he answers the conservatives but he does not do it often enough. He has to step up his challenge to the republican party and its so called conservative leaders inside and outside of Congress.
The democratic party itself does not do a good job in responding to the conservative ideology of division. Worst is the fact that the voting public seems not to remember how conservatives try to divide the country and as a result nothing gets done. Many have joined the "tea party" looking for a savior when all they need to do is remember the republican party's lack of any accomplishments and vote accordingly.
People in the news media don't get it either, especially TV news. They still promote the republican talking points that divide the country over issues that are bogus. They do not have a record of positive reporting on the issues that really affect the country and its people. The conservative networks like Fox News are way over the top and many follow the script of being unAmerican. The are beyond help.
The republican party with their conservative ideology have no shame or intention of being good Americans and facing the issues. Its hell when you have no record to run on or idea's that serve the country and its people's needs. Its even worse when you have no character or courage. That says it all.
Friday, August 13, 2010
The Latest Jobs Report
The U.S. Labor Department announced that the private sector added 71,000 jobs for July. Job losses which mostly came from state governments brought the net gains in jobs to 12,000. The unemployment rate stayed @ 9.5%. So far this year state and local governments have shed 169,000 jobs because of budget shortfalls.
The private sector has added jobs for seven straight months. The rate of addition is not fast enough to satisfy those unemployed or to ramp up the economy. Consumer spending will also not be up to par until more people are back at work.
Although the above numbers are weak to grow the economy the situation is not as bad as some people think and who are predicting another recession. The fact of the matter is the economy is not only growing steady but is on tract to add more jobs that reduce the unemployment rate. This is not an economy that is coming out of a normal or mild recession but one that is leaving behind the worst recession and job losses since the great depression. It is going to take longer than usual but the country is on tract. The federal reserve needs to keep its hands off the economy and stop manipulating things beyond their control.
The naysayers will once again be proven wrong. There will be no second recession and the economy will continue to improve and grow. Jobs will continue to be created and the pace of hiring will pick up as the economy continues its upward trend. Those who would still like to see the Obama administration fail will continue their negative talk up through the November elections. It is SOP for them because they have no record of success.
The private sector has added jobs for seven straight months. The rate of addition is not fast enough to satisfy those unemployed or to ramp up the economy. Consumer spending will also not be up to par until more people are back at work.
Although the above numbers are weak to grow the economy the situation is not as bad as some people think and who are predicting another recession. The fact of the matter is the economy is not only growing steady but is on tract to add more jobs that reduce the unemployment rate. This is not an economy that is coming out of a normal or mild recession but one that is leaving behind the worst recession and job losses since the great depression. It is going to take longer than usual but the country is on tract. The federal reserve needs to keep its hands off the economy and stop manipulating things beyond their control.
The naysayers will once again be proven wrong. There will be no second recession and the economy will continue to improve and grow. Jobs will continue to be created and the pace of hiring will pick up as the economy continues its upward trend. Those who would still like to see the Obama administration fail will continue their negative talk up through the November elections. It is SOP for them because they have no record of success.
Thursday, August 12, 2010
The 2001 and 2003 Federal Tax Cuts
The above tax cuts known as the "Bush Tax Cuts" are set to expire at the end of 2010 and the subject of debate. President Obama wants to retain them for certain people making less than $200,000.00 and 250,000.00 and let the rest expire which mainly affect the wealthy. Obama said the status quo on the taxes is bad fiscal policy in light of the governments decrease in revenues, economic conditions and budget deficits.
The republicans want to keep the tax cuts and recently Minnesota Governor Tim Pawlenty said congress should extend the tax cuts but want to offset them with government reductions in spending. Republicans in congress think the tax cuts are a stimulus to the economy(wrong again) and do not need to be paid for by cutting the budget. It should be noted that Pawlenty was silent at the time the tax cuts were passed and said nothing about paying for them. He now wants to cut back on entitlement programs such as social security to pay for the extension.
Bush and the republican party said the tax cuts at the time of passage would create a sustained economy and job creation but it did no such thing and in fact contributed to the economic meltdown, the loss of jobs in record numbers, deficit spending and a decrease in federal revenues. It is the same "trickle down economics" of the Reagan administration that Bush 41 inherited and then lost the election to Bill Clinton. Remember, it was "the economy, stupid."
Gov. Pawlenty statement he would cut entitlements such as social security confirms what this writer commented on many occasions here in politidose that the 20 year record deficit spending and debt of republicans Reagan, Bush 41 and Bush 43 was to bankrupt the federal government of needed revenue so programs like medicare and social security would have to be canceled or reduced to nothing.
The American people fell for "trickle down economics" twice, once under Reagan and once under Bush 43 and are still paying the price. "Trickle down economics" stops as soon as it hits the pockets of the wealthy. Why should the wealthy take a chance and reinvest their large tax breaks when there is no incentive to do so. Why would they take a risk on a sure thing when they are already wealthy?
David Stockman, Treasury Secretary under the Reagan administration is the author of a just released commentary where he blames the republican party for the fiscal and economic mess the country is now going through because of the past republican President's fiscal policies on tax cuts that deprive the federal government of revenue and did not make cuts to offset the difference. Mr. Stockman resigned as Reagan's treasury secretary after he said the administration "cooked the books." That led to eight straight years of record federal deficits during Reagan's two terms. In his latest commentary Mr. Stockman said the republicans have crippled the economy.
Congress should follow Obama's advice and let the tax cuts expire in line with his proposal. Twenty years of failed fiscal policy by Reagan, Bush 41 and Bush 43 that produced record deficits and debt says enough is enough. There should be no doubt of the conservative republicans record: Bankrupt the federal government and deprive it of the needed revenue to do those things that really matter and make a difference for its people. They do not believe in a middle class. That says it all. The past is still the key to the future for those who are willing to learn from past mistakes.
The republicans want to keep the tax cuts and recently Minnesota Governor Tim Pawlenty said congress should extend the tax cuts but want to offset them with government reductions in spending. Republicans in congress think the tax cuts are a stimulus to the economy(wrong again) and do not need to be paid for by cutting the budget. It should be noted that Pawlenty was silent at the time the tax cuts were passed and said nothing about paying for them. He now wants to cut back on entitlement programs such as social security to pay for the extension.
Bush and the republican party said the tax cuts at the time of passage would create a sustained economy and job creation but it did no such thing and in fact contributed to the economic meltdown, the loss of jobs in record numbers, deficit spending and a decrease in federal revenues. It is the same "trickle down economics" of the Reagan administration that Bush 41 inherited and then lost the election to Bill Clinton. Remember, it was "the economy, stupid."
Gov. Pawlenty statement he would cut entitlements such as social security confirms what this writer commented on many occasions here in politidose that the 20 year record deficit spending and debt of republicans Reagan, Bush 41 and Bush 43 was to bankrupt the federal government of needed revenue so programs like medicare and social security would have to be canceled or reduced to nothing.
The American people fell for "trickle down economics" twice, once under Reagan and once under Bush 43 and are still paying the price. "Trickle down economics" stops as soon as it hits the pockets of the wealthy. Why should the wealthy take a chance and reinvest their large tax breaks when there is no incentive to do so. Why would they take a risk on a sure thing when they are already wealthy?
David Stockman, Treasury Secretary under the Reagan administration is the author of a just released commentary where he blames the republican party for the fiscal and economic mess the country is now going through because of the past republican President's fiscal policies on tax cuts that deprive the federal government of revenue and did not make cuts to offset the difference. Mr. Stockman resigned as Reagan's treasury secretary after he said the administration "cooked the books." That led to eight straight years of record federal deficits during Reagan's two terms. In his latest commentary Mr. Stockman said the republicans have crippled the economy.
Congress should follow Obama's advice and let the tax cuts expire in line with his proposal. Twenty years of failed fiscal policy by Reagan, Bush 41 and Bush 43 that produced record deficits and debt says enough is enough. There should be no doubt of the conservative republicans record: Bankrupt the federal government and deprive it of the needed revenue to do those things that really matter and make a difference for its people. They do not believe in a middle class. That says it all. The past is still the key to the future for those who are willing to learn from past mistakes.
Wednesday, August 11, 2010
Big Oil, Confirmation Of Industry's Deceitful Past
In a story by David Hammer in the Times Picayune dated August 5 four Major Oil Companies, Exxon-Mobil, Chevron, Shell and ConocoPhillips vowed that in six months, their plans for a $1 billion system to contain oil well blowouts will dramatically improve the industry's preparedness. Top engineering officials from those firms appeared before the head of the new federal offshore oversight agency at a public hearing at Tulane University. They promised, in six months, an improved blowout response, and a fully revamped system ready for entire industry to share in 18 months.
The oil industry which the above companies are a part of assured the public for over 50 years the industry had the safety capabilities to prevent a blowout and remove any spilled oil from the Gulf before that oil reached land and now after over 3 months of the BP explosion and spill they tell us they won't have the means to do what they said they could do all along for another 18 months. These are the same companies who want the 6 month moratorium lifted, yet they are 18 months away from a system. They have completely ignored the 11 workers killed, those injured and the families who are still paying the price for the BP explosion.
There seems to be no shame by the oil industry for being so deceitful. Every time their officials open their mouth and every time elected officials support their positions prove that President Obama was right in declaring the moratorium and that the President displayed his leadership and courage concerning the spill and its aftermath. The oil industry and those elected officials who support their positions have reached the bottom of the barrel.
Melanie Driscoll, director of bird conservation for the National Audubon Society's Louisiana Coastal Initiative, offered a sobering counterpoint to the oil companies' assurances. Delivering a statement on behalf of the wildlife affected by the spill she said: "You protect us after the fact with imperfect protection, imperfectly managed. It must never again be acceptable to perform a massive chemical experiment on our Gulf waters and the living resources within. After the 11 rig workers, we are the next to die."
The public and government officials must never trust anything the oil industry leaders say again unless they can back up any pronouncements with facts and the ability to demonstrate such facts.
The oil industry which the above companies are a part of assured the public for over 50 years the industry had the safety capabilities to prevent a blowout and remove any spilled oil from the Gulf before that oil reached land and now after over 3 months of the BP explosion and spill they tell us they won't have the means to do what they said they could do all along for another 18 months. These are the same companies who want the 6 month moratorium lifted, yet they are 18 months away from a system. They have completely ignored the 11 workers killed, those injured and the families who are still paying the price for the BP explosion.
There seems to be no shame by the oil industry for being so deceitful. Every time their officials open their mouth and every time elected officials support their positions prove that President Obama was right in declaring the moratorium and that the President displayed his leadership and courage concerning the spill and its aftermath. The oil industry and those elected officials who support their positions have reached the bottom of the barrel.
Melanie Driscoll, director of bird conservation for the National Audubon Society's Louisiana Coastal Initiative, offered a sobering counterpoint to the oil companies' assurances. Delivering a statement on behalf of the wildlife affected by the spill she said: "You protect us after the fact with imperfect protection, imperfectly managed. It must never again be acceptable to perform a massive chemical experiment on our Gulf waters and the living resources within. After the 11 rig workers, we are the next to die."
The public and government officials must never trust anything the oil industry leaders say again unless they can back up any pronouncements with facts and the ability to demonstrate such facts.
Another Tuition Increase For Louisiana Public Colleges
In a reported story by the Associated Press, students returning to Louisiana's public colleges and two year community colleges will be faced with an 8 to 10% increase in tuition this year. The reason? Legislation passed by the Louisiana Legislature, backed and signed into law by Governor Jindal. Prior to this new law the legislature had to approve any increase in tuition. The legislators and Jindal got themselves off the hook of approving college tuition increases by allowing the colleges to act alone in the matter. No courage or leadership there.
Budget cuts recommended by Jindal to the legislature for higher education was adopted to balance the budgets which the governor and legislature still do not have a handle on. Colleges said they had to have more revenue to balance the budget cuts, hence, the increase in tuition. Once again, our so called leaders are brain dead concerning the budget and how to deal with the states fiscal problems.
It has been pointed out here in "politidose" and in other commentary how budget cuts under this administration has affected the average taxpayer at the same time the budget contains $7-8 billion in corporate welfare to those who need it the least and where no cuts have been made. The Saints who are owned by a multi millionaire is a prime example. Mr. Benson is laughing all the way to the bank. One can hear him saying to himself those dummies fell for it again.
This writer has pointed out on many occasions how so called conservative elected officials have stuck it to the average citizen in a hundred different ways under the guise of smaller government at a time of severe economic conditions. Let there be no mistake, under this administration the average citizen will continue to see his quality of life and economic status decline.
Budget cuts recommended by Jindal to the legislature for higher education was adopted to balance the budgets which the governor and legislature still do not have a handle on. Colleges said they had to have more revenue to balance the budget cuts, hence, the increase in tuition. Once again, our so called leaders are brain dead concerning the budget and how to deal with the states fiscal problems.
It has been pointed out here in "politidose" and in other commentary how budget cuts under this administration has affected the average taxpayer at the same time the budget contains $7-8 billion in corporate welfare to those who need it the least and where no cuts have been made. The Saints who are owned by a multi millionaire is a prime example. Mr. Benson is laughing all the way to the bank. One can hear him saying to himself those dummies fell for it again.
This writer has pointed out on many occasions how so called conservative elected officials have stuck it to the average citizen in a hundred different ways under the guise of smaller government at a time of severe economic conditions. Let there be no mistake, under this administration the average citizen will continue to see his quality of life and economic status decline.
Saturday, July 31, 2010
Secretary of The Navy Ray Mabus: Another Leader In The Obama Administration
Secretary Mabus, a former Mississippi Governor who is also Obama's Gulf Coast Restoration Chief met with U.S. Senators Landrieu, Vitter and U.S. Rep. Anh Cao who would like to see Mabus have Northrop Grumman change its plan to close Avondale by 2013. According to reports Vitter wanted the two final ships being built for the Navy to be done at Avondale and not Mississippi.
Secretary Mabus responded they don't have a Navy issue here but a Grumman issue and that Grumman wants to close Avondale and actually get out of the shipbuilding business. What those three elected officials should be doing is finding a Louisiana solution to a Louisiana problem.
The state's elected officials should immediately take the problem and run with it instead of trying to get Washington involved. Secretary Mabus put the problem where it belongs, in Louisiana's court. Now we will find out how our elected officials respond and if they will display courage and leadership in taking it upon themselves to do something positive instead of running to the Navy. I feel certain our elected officials knew what was coming long ago concerning Avondale and just sat on their hands.
Secretary Mabus responded they don't have a Navy issue here but a Grumman issue and that Grumman wants to close Avondale and actually get out of the shipbuilding business. What those three elected officials should be doing is finding a Louisiana solution to a Louisiana problem.
The state's elected officials should immediately take the problem and run with it instead of trying to get Washington involved. Secretary Mabus put the problem where it belongs, in Louisiana's court. Now we will find out how our elected officials respond and if they will display courage and leadership in taking it upon themselves to do something positive instead of running to the Navy. I feel certain our elected officials knew what was coming long ago concerning Avondale and just sat on their hands.
Monday, July 26, 2010
Another Give Away Of Louisiana State Revenue
St. Tammany Bureau writer in a Times Picayune article dated 7/14 Louisiana Governor Jindal announced that Globalstar, a Silicon Valley company that provides satellite telephone and data services, is relocating its headquarters to the Covington area in Louisiana. According to Jindal and Globalstar the company is committed to: relocating or creating more than 150 jobs in the area by the end of 2011, an additional 50 by the end of 2013 and then 300 more by the end of 2019. Globalstar noted, most if not all of the initial jobs likely will come about through relocations from Golbalstar's California office. In other words, not new hired employees.
The following is what Louisiana gave up to secure the relocation of Globalstar. Louisiana Economic Development committed to proving Globalstar with $4.4 million in expected relocation costs, as well as $3.7 million to offset the cost of leasing the Covington area building, previously the Bruno Wink Office Complex. In addition, Globalstar officials said they were enticed by the state's recently enhanced Digital Media Incentive tax credits that give a tax credit of 35% for payroll expenditures for digital media labor in the state and provide a 25% tax credit for certain other qualified expenditures.
That $8.1 million plus the 60% tax credits to a profit making private company continues the transfer of wealth from the average citizen to those companies who can afford to pay their own way. That loss of state revenue at the time of record state budget deficits and higher unemployment, layoffs, more state projected budget deficits in the coming years and budget cuts is truly astounding. It has been reported here before how the $7-8 billion in state incentives to businesses contained in the state budget are not evaluated on a regular basis by the governor or the legislature to see if the incentives are working.
The 350 jobs that Jindal and Globalstar says will be created by 2019 is a myth and ignores the fact that in the last two weeks the LSU system, UNO and Southern University announced budget cuts that will lay off workers that exceed 350 people. Jindal says those revenue cuts were necessary because of Louisiana's revenue shortfall. What a hypocrite. One should also note that the Louisiana Department of Labor on its website stated from December 07 when the recession officially started through May 2010, unemployment in Louisiana was up 3.1%. If you listen to Jindal he says all is rosy in Louisiana.
The bottom line in this sad announcement is that corporate welfare given to Globalstar will not reduce the cost of their products or service to the consumer nor will it go toward innovation. It will go to increase their profits which in turn will go to increase the bonuses of their CEO and other executives. History has already taught us that. Once again Louisiana has given away its natural competitive advantages and future state revenue in favor of the corrupt ideology of business and elected officials.
The Louisiana Workforce Commission says June unemployment in Louisiana was 8.3%, up from May's 7.1% and also up from 7.8% in June 09. With $7-8 billion in Tax incentive and other give aways of state revenue, one would think Louisiana would be adding jobs at record numbers. After the ribbon cutting for this new announcement I can see the executives of Globalstar sitting around laughing how they pulled another one off, this time on Louisiana governor Bobby Jindal.
The problem is the people of Louisiana, the average workers are paying the price.
The following is what Louisiana gave up to secure the relocation of Globalstar. Louisiana Economic Development committed to proving Globalstar with $4.4 million in expected relocation costs, as well as $3.7 million to offset the cost of leasing the Covington area building, previously the Bruno Wink Office Complex. In addition, Globalstar officials said they were enticed by the state's recently enhanced Digital Media Incentive tax credits that give a tax credit of 35% for payroll expenditures for digital media labor in the state and provide a 25% tax credit for certain other qualified expenditures.
That $8.1 million plus the 60% tax credits to a profit making private company continues the transfer of wealth from the average citizen to those companies who can afford to pay their own way. That loss of state revenue at the time of record state budget deficits and higher unemployment, layoffs, more state projected budget deficits in the coming years and budget cuts is truly astounding. It has been reported here before how the $7-8 billion in state incentives to businesses contained in the state budget are not evaluated on a regular basis by the governor or the legislature to see if the incentives are working.
The 350 jobs that Jindal and Globalstar says will be created by 2019 is a myth and ignores the fact that in the last two weeks the LSU system, UNO and Southern University announced budget cuts that will lay off workers that exceed 350 people. Jindal says those revenue cuts were necessary because of Louisiana's revenue shortfall. What a hypocrite. One should also note that the Louisiana Department of Labor on its website stated from December 07 when the recession officially started through May 2010, unemployment in Louisiana was up 3.1%. If you listen to Jindal he says all is rosy in Louisiana.
The bottom line in this sad announcement is that corporate welfare given to Globalstar will not reduce the cost of their products or service to the consumer nor will it go toward innovation. It will go to increase their profits which in turn will go to increase the bonuses of their CEO and other executives. History has already taught us that. Once again Louisiana has given away its natural competitive advantages and future state revenue in favor of the corrupt ideology of business and elected officials.
The Louisiana Workforce Commission says June unemployment in Louisiana was 8.3%, up from May's 7.1% and also up from 7.8% in June 09. With $7-8 billion in Tax incentive and other give aways of state revenue, one would think Louisiana would be adding jobs at record numbers. After the ribbon cutting for this new announcement I can see the executives of Globalstar sitting around laughing how they pulled another one off, this time on Louisiana governor Bobby Jindal.
The problem is the people of Louisiana, the average workers are paying the price.
Saturday, July 24, 2010
President Obama's Leadership In The BP Oil Spill
It is over three months since the explosion of BP's blown out Macondo well and resulting oil spill in the waters of the Gulf of Mexico. That explosion killed 12 workers and injured many more. Up to this point in time President Obama has showed his leadership and wisdom by his actions.
The President has visited the Gulf Coast several times since the blow out and is scheduled to return again soon. V.P Biden has also done the same. A $20 billion commitment over four years was secured from BP by the President to compensate those affected by the spill and the President put the blame where it belongs, on BP.
Kenneth Feinberg was appointed by the President to administer the $20 billion fund and will operate independently from BP and the White House in discharging his duties. Mr. Feinberg has experience in doing this type of thing and administered the 9/11 fund. The President also appointed Thad Allen as "incident manager" of the spill. Mr. Allen retired from the Coast Guard not long after the explosion and has displayed his leadership and toughness in the matter and is holding BP accountable to cap the well for good and clean up the spilled oil from the Gulf.
Obama's moratorium on deep water drilling in the Gulf as a result of the explosion and loss of life until answers can be found as to the cause of the explosion. There are those in the news media, elected officials, the oil industry, the business community and others who oppose the moratorium and want it lifted before answers can be found even though 12 workers lost their lives. Past Presidents shut down the U.S. manned space flights program that took the lives of our astronauts after two accidents. One was the space shuttle Challenger that broke up in flight and killed all aboard, and the space capsule on earth that caught fire while being tested and killed all inside the capsule. The shutdown lasted over a total of three years and for good reasons.
The establishment of a commission by the President to investigate the causes of the explosion and come up with recommendations for future safety in deep water drilling showed the President's leadership in recognizing the fact that never again should lives be lost and lively hoods be put at risk.
The President has showed his leadership and wisdom concerning this incident despite all the negative talk about his actions, especially by those who continue to take oil lobby money for their campaign war chest. The President needs to stay the course until the issue is settled in favor of the people and the environment.
The President has visited the Gulf Coast several times since the blow out and is scheduled to return again soon. V.P Biden has also done the same. A $20 billion commitment over four years was secured from BP by the President to compensate those affected by the spill and the President put the blame where it belongs, on BP.
Kenneth Feinberg was appointed by the President to administer the $20 billion fund and will operate independently from BP and the White House in discharging his duties. Mr. Feinberg has experience in doing this type of thing and administered the 9/11 fund. The President also appointed Thad Allen as "incident manager" of the spill. Mr. Allen retired from the Coast Guard not long after the explosion and has displayed his leadership and toughness in the matter and is holding BP accountable to cap the well for good and clean up the spilled oil from the Gulf.
Obama's moratorium on deep water drilling in the Gulf as a result of the explosion and loss of life until answers can be found as to the cause of the explosion. There are those in the news media, elected officials, the oil industry, the business community and others who oppose the moratorium and want it lifted before answers can be found even though 12 workers lost their lives. Past Presidents shut down the U.S. manned space flights program that took the lives of our astronauts after two accidents. One was the space shuttle Challenger that broke up in flight and killed all aboard, and the space capsule on earth that caught fire while being tested and killed all inside the capsule. The shutdown lasted over a total of three years and for good reasons.
The establishment of a commission by the President to investigate the causes of the explosion and come up with recommendations for future safety in deep water drilling showed the President's leadership in recognizing the fact that never again should lives be lost and lively hoods be put at risk.
The President has showed his leadership and wisdom concerning this incident despite all the negative talk about his actions, especially by those who continue to take oil lobby money for their campaign war chest. The President needs to stay the course until the issue is settled in favor of the people and the environment.
Thursday, July 15, 2010
Northrop Grumman and Avondale Shipyard
Speculation turned into reality Tuesday July 13 when Northrop Grumman officials announced the Avondale Shipyard facility will wind down in 2013. Grumman, one of the largest defense contractors in the United States will consolidate all of its Gulf Coast operations to its Pascagoula, Mississippi shipyard. That shipyard at Pascagoula employs approximately 12,000 workers. Both of the shipyards were involved in building the Navy's LPD-17 landing vessels.
Louisiana's elected officials say Avondale employs about 5,000 workers who will be out of a job if the situation comes to pass. They were hoping the last two LPD-17's would be built at Avondale which would have kept the Avondale facility in business a little while longer but Grumman put that to rest with their announcement.
In a Times Picayune story dated 7-14 concerning the Avondale matter Grumman CEO Wes Bush was quoted as saying: The consolidation will reduce future costs, increase efficiency and address shipbuilding overcapacity. This difficult, but necessary decision will ensure long term improvement in Gulf Coast program performance, cost competitiveness and quality.
Bush's statement deserve some comment. It's obvious the Avondale shipyard did not fit into any future plans of Grumman unless their two other shipyards had overflow contract work and Avondale was needed to fill the void. Avondale did not fit in with Grumman's need to consolidate, reduce future cost and increase efficiency. Bush's statement also seem to confirm what was stated in another Times Picayune article dated 7-11 that reported: James McCaul, a shipbuilding expert at International Maritime Associates, Inc., said: Avondale's equipment is probably obsolete. I doubt much has been done to upgrade the facility. Avondale ships have also been plagued with malfunctions and setbacks, including cost overruns, construction delays, poor welding, leaks and computer design flaws. Does that mean Grumman let the Avondale facility loose its competitiveness because it had two other shipyard facilities that were kept up to date, especially the one in Pascagoula, Mississippi.
This situation reminds me of an old story where nothing is learned from past experience. Prior to Grumman taking over Avondale, Avondale was in business for many years and did more work unrelated to Naval shipbuilding than they did under Grumman. Avondale survived all of those years. When Grumman took over Avondale we experienced a rerun of a large corporation eliminating a competitor. It's a rerun in Louisiana of the many take overs of independent oil companies by the major oil companies promising more drilling and production that never happened.
Now some of our elected officials in Louisiana want the federal government to give out more defense contracts so Avondale can stay alive. These are the same elected officials who say they hate federal spending. They completely missed Grumman's point of why they are shedding Avondale. Avondale simply does not fit in their plans any more and with the Navy contract coming to an end it gives them an excuse to cut their losses.
No one wants to see 5,000 workers loose their jobs but it is another rerun of corporate America's misplaced priorities. We do not have to look any farther than the BP explosion. BP and the oil industry still have no answers 3 months later, 12 workers were killed, other injured and many elected officials and oil industry representatives oppose the moratorium. They have completely forgot about those workers killed and or injured. Companies as large as Grumman will survive, take over other companies to eliminate competition and the same process will start all over again. Workers will be laid off but their CEO's and executives will continue to receive their bonuses. And elected officials will continue to collect campaign contributions from corporate lobbyist at the same time.
Louisiana's elected officials say Avondale employs about 5,000 workers who will be out of a job if the situation comes to pass. They were hoping the last two LPD-17's would be built at Avondale which would have kept the Avondale facility in business a little while longer but Grumman put that to rest with their announcement.
In a Times Picayune story dated 7-14 concerning the Avondale matter Grumman CEO Wes Bush was quoted as saying: The consolidation will reduce future costs, increase efficiency and address shipbuilding overcapacity. This difficult, but necessary decision will ensure long term improvement in Gulf Coast program performance, cost competitiveness and quality.
Bush's statement deserve some comment. It's obvious the Avondale shipyard did not fit into any future plans of Grumman unless their two other shipyards had overflow contract work and Avondale was needed to fill the void. Avondale did not fit in with Grumman's need to consolidate, reduce future cost and increase efficiency. Bush's statement also seem to confirm what was stated in another Times Picayune article dated 7-11 that reported: James McCaul, a shipbuilding expert at International Maritime Associates, Inc., said: Avondale's equipment is probably obsolete. I doubt much has been done to upgrade the facility. Avondale ships have also been plagued with malfunctions and setbacks, including cost overruns, construction delays, poor welding, leaks and computer design flaws. Does that mean Grumman let the Avondale facility loose its competitiveness because it had two other shipyard facilities that were kept up to date, especially the one in Pascagoula, Mississippi.
This situation reminds me of an old story where nothing is learned from past experience. Prior to Grumman taking over Avondale, Avondale was in business for many years and did more work unrelated to Naval shipbuilding than they did under Grumman. Avondale survived all of those years. When Grumman took over Avondale we experienced a rerun of a large corporation eliminating a competitor. It's a rerun in Louisiana of the many take overs of independent oil companies by the major oil companies promising more drilling and production that never happened.
Now some of our elected officials in Louisiana want the federal government to give out more defense contracts so Avondale can stay alive. These are the same elected officials who say they hate federal spending. They completely missed Grumman's point of why they are shedding Avondale. Avondale simply does not fit in their plans any more and with the Navy contract coming to an end it gives them an excuse to cut their losses.
No one wants to see 5,000 workers loose their jobs but it is another rerun of corporate America's misplaced priorities. We do not have to look any farther than the BP explosion. BP and the oil industry still have no answers 3 months later, 12 workers were killed, other injured and many elected officials and oil industry representatives oppose the moratorium. They have completely forgot about those workers killed and or injured. Companies as large as Grumman will survive, take over other companies to eliminate competition and the same process will start all over again. Workers will be laid off but their CEO's and executives will continue to receive their bonuses. And elected officials will continue to collect campaign contributions from corporate lobbyist at the same time.
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