Monday, May 3, 2004

Time to bring back the draft?
Long ago and far away the USA still had this thing called the draft. While most of us who didn't harbor ambitions of becoming career soldiers weren't thrilled about it, there was another thing known as the Vietnam War going on that made troop replacements necessary, even if in relatively modest numbers compared to WWII. Since such large numbers weren't required, a draft "lottery" system was put in place in the late 1960s, with each eligible male (at that time) assigned a number based on the day of his birth. Lower numbers were almost certain to be drafted unless they volunteered first; higher ones started planning the rest of their lives with peace of mind. In the aftermath of Vietnam the draft was abandoned in practice, and the American military went to a completely volunteer system which, to the surprise of many, has worked out well. The caliber of people -- men and women -- now serving voluntarily seems high. Competence and dedication do not seem lacking. What does seem lacking now is volume. The War on Terror with all its global commitments, plus normal demands on our forces, has stretched the U.S. military to what seems dangerously thin levels, particularly when it comes to troops on the ground. National Guard and Reserve forces have been tapped heavily for this war. Where are we going to get more troops if another crisis of similar dimensions arises?

By Robert Parker at 5:54 PM | Permalink
Category: Homeland Defense | Comments (2)

Sunday, May 2, 2004

Weapons of Mass Confusion
I don’t know why President Bush felt is was necessary to put all of his eggs in one basket in Iraq by making WMD’s the sole justification for getting rid of Saddam. Anyone who doesn’t understand that if Saddam had reached his stated goal, that is to gain control of the distribution of a majority of Persian Gulf oil, that the damage to our way of life would be “economic mass destruction,” is either naïve or rides a bicycle to work. Our dependence on the foreign oil we use in our cars and trucks every day cannot allow terrorists, whether they are heads of state or rouge groups, to interrupt its supply. If we don’t agree with or like the Iraq War, then the real answer is to reduce our dependence on Middle Eastern oil and disengage entirely from the clearly antagonistic Islamic world that controls much of the world’s exportable supply. This must be done by both conservation and alternative fuel sources. So, my friends, the next time you go out and turn the key on your gas guzzler, remember the real reason why President Bush went into Iraq – to protect us from ourselves. George didn’t lie to us - rather we are lying to ourselves if we believe that our dependence on Middle Eastern oil is not the real WMD we face!

By Ray Darnell at 9:58 PM | Permalink
Category: Economy | Comments (1)

Sunday, May 2, 2004

Social Security is not going broke!
Social Security is just like any large-scale retirement plan such as those established by major corporations like GM or Pfizer, or industry groups like the Teacher's Retirement System or Railroad Retirement. That is, the Social Security Administration receives contributions from its members (FICA taxes from you and me), it invests those contributions in investments allowed by its charter, and then later pays out benefits to retirees. Most large pension plans, like the ones mentioned above, only invest about 30-60% of their assets in government debt because their charters also allow them to invest a portion of their assets in corporate stocks and bonds. The Social Security Trust Fund, on the other hand, invests 100% in U.S. government debt. This means two things (a) its returns are low because interest rates have been low for the last few years, and (b) its totally dependent on one organization for its future security. Now if you believe the U.S. government will never default on its debt, then “b” is no big deal – but, “a” is still a problem. Right now the Social Security Trust Fund should last out past 2025 (some say as far out as 2045) without any increase in Social Security taxes. However, that deadline could be extend out way further if the Social Security Trust fund was allowed to invest a portion of its assets in corporate stocks and bonds. Therefore, the way to make Social Security financially sound is by retaining professional money managers (mutual funds, insurance companies, etc.) to invest a portion of the Social Security assets in corporate stocks and bonds which would increase the return on the Trust Fund assets and extend its life at current contribution levels –it could even cause a surplus and contributions could be reduced! The problem then is that the government (made up of both Democrats and Republicans) would have to go find another source to to buy its debt so it can overspend (“deficit finance”) every year– but that's another discussion!

By Ray Darnell at 7:57 PM | Permalink
Category: Health and Retirement Care | Comments (0)