Friday, September 3, 2010
Payroll tax holiday
In the 1890s the money supply was gold. For fifty years the country had increasing amounts of this commodity from California, Alaskan and Yukon gold mines. The supply of new gold began to dry up in the 90s, but not the need for it to fund expansion.
The capricious spending of the 1920s came to an abrupt end when speculators realized that the value of the stocks they owned was ethereal. The banks that lent money on what they thought was market value, suddenly found that their collateral had no substance. They could not lend and business could not find funds to continue growth.
In 2008 the basis for growth was not gold nor stocks, but the consumer's appetite for big houses funded by what was perceived to be a never-ending increase in value of their investment. Americans began to use their homes as ATMs. Again, the banks went along with this fantasy, fueled by the guru of the Federal Reserve, Alan Greenspan.
Consumers could not afford their mortgages and cut back on spending. Business saw inventories increasing and cut back on both hiring and making additional product. Banks stopped wild loans of 100% or more of value. While the basis was different (houses as collateral versus stocks as collateral) the problem was the same. Loss of liquidity.
In 1935 along came John Maynard Keynes who wrote The General Theory of Employment, Interest and Money. He basically said that there are three components of any economy: What consumers spend, what business invests, and what Government spends (or invests). These three items comprise the Gross Domestic Product (GDP). Reduce any one of them and GDP decreases.
The deficits caused by our participation in World War II brought an end to the Great Depression and convinced some that Keynes was right, that government must step in when the other elements of GDP are not viable.
A moratorium on the Employment Tax (FICA) that funds Social Security is now being considered. In fact, Senator Scott Brown (R. Mass) had indicated his support of this idea in January. This tax goes into a Trust Fund that is then borrowed by the Government to fund deficit spending and may be the largest lender to the General Revenue. Stopping this tax does not add to the general deficit. It is not part of the federal budget.
What does a moratorium do? First, we do not have a problem for funding Social Security until about 2037 under current actuarial calculations. By allowing current employees to use these funds that would otherwise be a tax, consumer spending will increase immediately. Secondly, business who will save their portion of FICA will have funds to both increase investment and incentive to hire additional workers since the cost of wages will be reduced by the elimination of the FICA tax.
The placement of funds in the hands of consumers and business will be the fastest way to improve the GDP. Keynes would be smiling.
Thursday, May 27, 2010
Obama’s Drill Baby Reasons don’t meet the economic test
The cost of oil brought up from the near surface wells in the Middle East is by far less costly and less environmentally challenging than that from the Gulf. True, the U.S. MIGHT get some royalty income from the leases if the Interior Department can get its act together to collect this income. But this oil will not make a dent in our use and there is no reason to believe that the oil drilled from offshore will reduce our out of pocket cost-in fact such payments will probably increase since the oil produced off shore is the most costly oil to produce on the market.
A sound energy policy should not have as one of its facets the cost-ineffective off shore drilling that has led to making the Gulf of Mexico an oil tanker, polluted shorelines and sickened inhabitants of Louisiana, many of whom do not have health insurance.
There is a superabundance of finance experts in the Administration. There needs to be a stable of experts on strategic markets, like oil.
Sunday, April 4, 2010
Retraining the Lost Generation
Unemployment, today, can be traced to the construction industry. The overbuilding of the period from 2001-2007, spurred on by ridiculous lending by banks and mortgage companies, made available well-paying jobs for people who did not need education. Construction jobs stimulated jobs in ancillary industries for wood products and structural steel, to mention two.
I am old enough to remember to have worked on a similar structural economic problem that became acute in the early 1960’s. We had emerged from World War II and the Korean War. The defense industries that had thrived in this period were seeking government largesse that President Eisenhower warned against: the military-industrial complex. But the steel industry and its major ancillary industry coal mining were in increasingly desperate shape.
The Appalachian Regional Commission was created to seek solutions to the horrific poverty that we were seeing in states like West Virginia and eastern Kentucky. Leaders of cities like Pittsburgh saw its future in industries other than steel. The Congress was persuaded to invest in education through the National Defense Education Act.
Today, we do not have such leaders as the progressive, David Lawrence, and the ultra conservative, Richard Mellon, who combined to shift from the pollution of steel to transform Pittsburgh to where you can now see that the sky is really blue. We do not have the sharp political wits that made the Kennedy-Johnson period a political success story.
If it takes using the Defense budget, perhaps that is where our emphasis should be. We have a war in the U.S., but it is not in Iraq, Iran, Israel, but at home. We are growing an increasingly uneducated work force at just a time when just the reverse is needed.
Let’s shift our defense spending from planes, tanks and guns to educating our future generations and retraining the lost generation.
Saturday, March 20, 2010
From Directing to being Directed
Tuesday, March 9, 2010
Bill Dudley: The End to a one year era
I returned on Sunday from the Run for the Roses. I wanted to write this note as quickly as possible so that I would not forget. Art pledged me to complete secrecy about what I had heard, and other than writing and filing this note; I will not speak of what transpired.
Besides me, there were three others at the Derby Saturday, Art Rooney, Bill Dudley, and Fran Fogarty. “Bullet Bill” had finished the 1946 season as the most spectacular player I or anyone else had ever seen. Art wanted to sign him for the ’47 season, but there were problems. He had had several clashes with that other Steelers great, the coach, ‘Jock’ Sutherland. Bill had been a standout at Virginia where they played the new T-formation. In the single wing, Bill was often left open to punishing tackles. He wanted the coach to modify and got into a heated argument with him over tactics.
Having finished the season under the unwavering coach, Dudley came to Louisville with one mission. If he were going to continue with the Steelers, he would have to be paid a lot more than the $5,000 he made for 1946. He told Art that he understood that “Whizzer” White had a contract for $15,000 a decade earlier, and that either he would get $25,000 or he would retire.
Art told Bill that he had been carrying the team for the war years and it was only in 1946 that the team began to almost pay for itself. Bill was noticeably upset, but knew that Art was being truthful. He told him that the maximum he could go was $10,000, but would agree to a bonus if certain conditions were met. The possibility of anything approaching Bill’s figure was not remotely possible.
Bill was downcast when we parted, he back to Virginia, we, back to Pittsburgh.
Sunday, February 28, 2010
Health Care: Think Comprehensive and Practice Incremental Change
When I worked in policy development, comprehensive took the form of PPBS or Program Planning Budgeting Systems. This concept evolved from the attempts by the Defense Department to get its budget to where results related to dollars spent. The problem, it required the Representative in Congress to gore the hides of a majority of its members.
The same is true for the bills passed by the Senate and House on Health Insurance Reform. No one questions the need for reform, but almost each step proposed in each of these comprehensive packages has an impact on individual representatives that necessitates him or her to register a no vote, or worse, get “paid off.”
As of the first of March 2010, passing a comprehensive change has been placed in the hands of Nancy Pelosi, Speaker of the House. If she could garner a majority, the very imperfect Senate package could be passed and sent to the President. An astute politician, she has decided the easy way out is to throw the ball back to the poorly operating Senate and let them muddle through. History has shown that this maneuver may be clever politics, but cowardly and likely to lead to no change for a health care system that is on its way to total disaster.
Comprehensive proposals rarely pass Congress. FDR barely did it with the Social Security Act in 1935 and LBJ squeaked by on the Civil Rights Act of 1964. Comprehensive reform of the Defense Department budget sought by Robert McNamara was DOA as it cut programs in too many Congressional Districts, programs that if considered separately would have won majorities in most aspects.
Republicans have been crude and gamey in their political attacks. But, underlying their arrogance is a political reality, expressed most effectively by Senator Alexander. The comprehensive nature of the House and Senate proposals cannot receive clear majorities. Their supercilious proposal of “shred and start over” is reflective of the political reality that the substance in each proposal can have an up or down vote that might lead to comprehensive change: to paraphrase Senator Alexander, incrementalism will garner bipartisan support for most of the pillars in each proposal, that the political fight will be over a small percentage of items that may pass or fail by narrow votes.
The late Senator Kennedy understood this political reality and worked diligently on structuring incremental change. He also publicly scolded himself for not working with the Nixon Administration when it proposed a comprehensive health care program in 1974 when the percentage of GNP spent on health care was only 8% (now 17% and growing). I would like to think that the Congressional leadership would have learned this lesson from history. It’s all right to think comprehensively on health care reform, but realism dictates that enactment will occur only through passing elements incrementally.
See my other writing on health care reform: Universal Health Revisited 1/27/09; Doctor Appointment: Wait 3 Months; Murray's latest writing on health care; and Nixon Health Plan Revisited.
Tuesday, January 12, 2010
Finding My Voice as an Artist
Friday, December 11, 2009
Same Old Steelers
As he passed my father after suffering another humiliating defeat, Art Rooney, founder and then President of the Pittsburgh Steelers, would utter a phrase I heard all too often, but seems applicable today. Dad would say something like, "Well Prez, we had a chance." To which Art would respond, "SOS." Art never seemed to be upset with the team he founded and nurtured through years of deficits with no thought of moving the franchise as so many other owners had done: Cardinals from Chicago to St. Louis, to finally repose in Arizona; Rams from Cleveland to LA to St Louis, Redskins from Boston to Washington, Colts from Dallas to Baltimore to Indianapolis.
I'm sorry, but on Thursday December 10th, I completely forgot about a game with the Browns because I knew the outcome. Instead, I chose to watch the Penguins, a team with which I had no history having moved from Pittsburgh in 1966. I saw the poor passing of "star" forward Malkin who has started more than one scoring rush for the opposition and thought of Recklessburger's game losing interceptions into the end zone. I swore. I don't know how Dad kept his cool when Pete Backer would wind up for a slap shot on the power play only to have it blocked and the opponent on his way to a break away on Gil Mayer.
Steelers History month is on at the Heinz-Pittsburgh History Museum on Smallman Street. I wish I could attend, but, alas, I like the Sun in Santa Fe, and the comforts of home and a 50 inch flat screen, HD TV as I sink into my couch.
You can get my book, Screamer:The Forgotten Voice of the Pittsburgh Steelers at the Museum Bookstore, or order it through my web site: www.murraytuckerwriter.com
Sunday, December 6, 2009
Hoop Dreams
One of the advantages of Santa Fe is that large snowfalls are rare. At one of the large garden centers here we saw a demonstration of a 4'x8' garden in which various vegetables can survive even though the temperature goes to zero or below.
The base of the "box" is constructed of cedar. The steel hoops have a summer cover and a winter cover that keeps in heat. A soaking hose is run along the ground and one 100 watt light is mounted in an inverted pot to maintain temperature when the outside temperature drops below 38F.
We wanted to see it work for two reasons, curiosity and to have certain vegetables virtually year round.
The system has worked except for the soaker hose. We had to hand soak the ground and may have to do this again in a week.
As part of the "Green Movement" we expect to see many of our neighbors with such a convenience in the next couple of years.
Planted now: spinach. Kale. broccoli, chard, onions, lettuce (various)
Tuesday, November 10, 2009
NFL on CBS TV
[for other posts on Steelers see http://sportbehindthemike.blogspot.com/
My father, Joe Tucker, was a pioneer in broadcasting both radio and television of Pittsburgh Steelers' games. His initial telecast in 1951 was carried by DuMont from Comiskey Park in Chicago (Steelers vs. Chicago Cardinals). His work for CBS TV began in 1954. His last report was in 1981 as a guest on a radio broadcast.
[Video of last broadcast]
Reading through his notes in preparation for writing his biography (Screamer: The Forgotten Voice of the Pittsburgh Steelers) I was surprised that he stuck with television. While there was more money and prestige in the visual media, the changes in broadcasting style, forced by production people who had no experience in football, brought down the quality of what a listener would get from an announcer. Cardinal Rule 1 with Joe was to provide an oral picture of everything that was happening on the field. This rule conflicted with Cardinal Rule 1 of the production people: Describe what the viewer was seeing on his TV set. What this conflict meant was that description of what flankers were doing on offense and linebackers were doing on defense, was not provided.
On a punt, the camera's focus was first on the punter and then on the receiver. Clips (now known as blocks in the back) were called by referees. The fan had no notion of the alleged crime other than it was called. The announcer was told not to relate his own view either of the fact or the severity; there was no replay.
As CBS moved towards a League contract, the number and force of production people increased. Perhaps the most disconcerting was the institution in 1958 of "time out for a commercial." CBS producers wrote specific guidelines instructing officials when to interrupt the flow of the game. While such interruption was to be as neutral as possible, timing was left to sideline officials who (at that time) were hired by the home team.
Television coverage has evolved to the state of art it is today, but the early days were chaotic and conflicted for announcing. If you're like me, you ignore the announcers who are often in another world and either turn off the sound or pay it no mind. You time chores of 4 minutes so that they occur with commercial interruptions that last at least four minutes. Games that used to last 2.5 hours now stretch beyond three hours, but the game has become genuinely entertaining, especially in high definition on a big screen.
Thursday, November 5, 2009
SOCIAL SECURITY:NO INCREASE


Do it yourself Sanitary Engineer, JoAnne (she studied for five minutes at the Transfer Station to get her Ph.D. pile it higher and deeper).
Loading the transfer mobile (aka garbage truck) took five minutes- Murray watched.
Actually, where we live it is easier to drive our 'refuse' than to move a garbage can down our drive and up to a cul de sac. It's also way cheaper and we get to recycle.
We run refuse once every two to three weeks. Each trip costs $1.35 plus gas with no wear on Murray's body- he loves taking pictures, and JoAnne sees the trip as part of her stay healthy- keep the earth for the future routine.
Friday, October 9, 2009
Modeling for Art Students
Now that I am settled in our home in Santa Fe it is time to get back to painting and drawing. On Tuesday and Thursday Evenings current students and alumni of the Tony Ryder Studio, meet to draw. Because the cost of a model is beyond the budget of most, each participant signs up for one week of modeling. The rest of the time one gets to draw.
Last night, I went for the first time. The assigned model didn’t show. We waited fifteen minutes. Knowing that I had never modeled before and that I would be signing up to model for two sessions later on, I decided that I wanted to give it a try for a shortened session to see if I could handle it. I volunteered and immediately the five other artists began setting up. I climbed into the chair set up in the dramatically lit section of the studio and found a comfortable pose. As it was most likely that people would be doing just a portrait my big question was hair up in an informal bun or down. I decided “up.”
A fellow participant began the timer. I choose a spot to focus on knowing that would help keep my head at the same angle and began using meditation techniques of counting my breathing to help pass the time. As always at The Ryder School an intense quiet fills the room as artists focus on their work. It was an amazing feeling to be their model and know that sitting very still and focused was enabling them to create.
I thought I might have felt self-conscious, or that my ego would get in the way. Neither happened. Instead I simply felt a part of the creative process. After 20 minutes of sitting there is five minutes of break. During the break I could look at the progress being made by fellow artists. Each protratit was from a different angle. Each clearly captured my likeness and each had a quality unique to the artist. One of my favorites emphasized my eyes. The dramatic lighting gave a sculptured effect that I enjoyed seeing.
Wednesday, September 23, 2009
Background Work on "Crash"
After signing in, wardrobe looked over my three outfits and selected a first outfit and a second if needed. Luckily the first one they selected was my own and my hope was that I would be able to return the Walmart jacket along with the shoes. Back to our "holding" area to wait for instruction. The Assistant Director in charge of extras then asked if any of the extras had driven because they were short on "upscale" cars. He asked us to raise our hands if we had a car that wasn't red or white. He then asked us each the kind of car we had. I shared that I had driven a 2001 SVU Mitsubishi Montero Sport. Two of us were selected to join the line with a Porsche, a Mercedes, and a BMW. We were led to a parking lot where the action was to take place.
Monday, August 31, 2009
Nixon Health Plan Revisited
On Monday, August 31, 2009, Paul Krugman wrote an article on the Nixon Proposal. I have been touting this proposal for years: http://www.steamboatpilot.com/news/2009/jun/10/murray_tucker_phd_buying_reinsurance/
It is a public option that is more progressive than anything that has been put forth, so far. I urge followers of this blog to view it: http://www.nytimes.com/2009/08/31/opinion/31krugman.html?hp
Wednesday, August 19, 2009
Murray's latest writing on health care
Sunday, August 2, 2009
Rabbit Ear Pass Steamboat Springs Colorado

It was unusual for so many wildflowers to be present this late. At the end of June we visited the same area with our grandson, Jonathon. There were NO wildflowers.
Rabbit Ears is easily accessed off of US 40, east of Steamboat Springs. Its name relates to two stone outcroppings on the summit (you can see one of these outcroppings in the picture on the left).
The picture on the right was taken at a picnic area at nearby Lake DuMont. The dominant flowers were Lupine and Indian Paint Brush- but there were many more varieties.
Thursday, July 16, 2009
Hike to Smith Lake in the Flat Tops


Saturday, May 23, 2009
A Visit to Georgia O'Keeffe's House in Abiquiu

Abiquiu Lake
Awesome is the best word I can use to describe our tour to Georgia O'Keeffe's house and studio. The tour is run by Georgia O'Keeffe Museum for which we made reservations by phone 10 days in advance. I understand that sometimes,especially in the summer. there can be a month or more wait. This is not surprising as the tour only runs three days a week from mid March through mid November (Saturday tours are added from June through October) with just five tours per day. Each tour is limited to twelve people at a time. No cameras are permitted