Merry Christmas 2004
Season's Greetings to all.
I am writing today from the northwoods of Minnesota. The family piled into the minivan this morning and made the trek north. We are here visiting Ma and Pa Squirrel. Brother Squirrel and his family came south. The rule is that the first one to arrive gets the extra stall in the garage. We beat my brother by about 20 minutes. So, our car stays warm tonight. But enough about me.
To all our readers, I want to wish you all a very merry Christmas and a bountiful new year.
Merry Christmas (of if you choose, Bah Humbug).
Better Take Your Financial Pulse
Inspired by Squirrel's last post, I set out on a fact finding mission in order to add to the discussion. In doing so, I came across an article written by a Retirement Business Strategist for Van Kampen Funds, Thomas Rowley. I greatly enjoyed the article. It is entitled "
What You Didn't Hear During The Elections?" I am unable to provide the link so I've enclosed the ariticle in it's entirety.
"Although it is important and overdue, I guess I did not expect a debate on retirement issues during the 2004 election. For any politician, the prospect of large numbers of angry retirees a group that votes at higher levels than other age group is unsettling. However the “three-legged
stool of retirement” Social Security, retirement plans, and personal savings looks a little
wobbly.
The root of the problem is a long-term shift that politicians do not want to face. Why? Because the necessary long-term solutions include unpopular choices. Social Security and pension reform are issues rarely engaged during the political cycle. However, we should talk about it now, before the next excuse comes along.
For Social Security, the problem is twofold
Americans are living longer; and the senior population is growing faster than the number of young workers to cover their needs. That means benefit levels are getting harder to sustain. In October, Federal Reserve Board Chairman Alan Greenspan called for a scale-back in future
Social Security benefits. But let's be realistic. The federal government's belt-tightening is designed to help cover a growing federal budget deficit and this should concern you. However, neither the Republicans nor Democrats have made the reduction of future benefits their campaign cry. Add Social Security issues to deficit pressures, corporate cutbacks and a sobered stock market, and many Americans are unprepared to meet their financial needs in retirement.
Retirement plans, which represent the next leg of our three-legged stool of retirement, are breaking. From the airlines, to the steel industry, to the auto manufacturers, large companies are struggling to meet their obligations to retirees.
In October 2004, United Airlines told a bankruptcy court that it was considering terminating all of its pension plans. Many aviation experts contend that after two years in bankruptcy, and with its finances still precarious, United has no other choice but to default on its pension plan. The competition from low-cost airlines, many of which provide 401(k) plans instead of traditional pensions, has transformed the economics of the aviation industry. The cost of maintaining
defined-benefit pension plans does not make good business sense when you have low-cost carriers entering the market. For airlines, like other industries, the day of the defined-benefit pension plan appears to be over. If United does default on its pension obligations, the default will be the largest in history more than twice the size of the 2002 Bethlehem Steel Corporation default. Once United defaults, other carriers like Delta and US Airways will also have to find a way to dramatically reduce their pension obligations. US Airways, which already has defaulted on its pilots' pension plans during its first trip to bankruptcy court in 2002, has warned
that it may default on others as well. Delta, another airline teetering on the edge of bankruptcy, may have no choice but to follow suit.
A chain-reaction of airline-pension defaults would put additional pressure on the Pension Guaranty Corporation (PBGC), the federal agency that insures traditional pensions in case companies go bankrupt. If other airlines follow, the PBGC may have to go to congress and plead for a bailoutthat some experts say would be bigger than the Savings and Loan debacle of the 1980s.
At least, as of mid-October, it appears the stock marketis climbing it's way out of a three-year tumble and many 401(k) and IRA balances are growing, too. However, we should remember the balances of defined contribution plans (401(k), 403(b), 457, Profit Sharing, SEP and (SIMPLE) and traditional IRAs represent untaxed income. So, as the sign on the rearview mirror says
“objects may appear larger than they really are.” If one of the solutions to Social Security and retirement-plan issues is higher taxes, then your defined contribution plans and IRAs just got smaller. This brings us to the last leg of the three-legged stool: personal savings. As many as 40 percent of Americans have saved almost nothing for retirement.(i)
Simply put: Retirement for U.S. workers just is not what it used to be. Forget the gold watch, the reliable pension and Social Security check for 30 years of service. The impact of demographics, globalization and competition from low-wage companies in low-wage
countries that don't provide benefits has shifted the onus of retirement security from government and businesses to individuals. So, how are you planning for your retirement?
(i) “The 'Retirement Readiness' Crisis in the United States,” Benjamin Stein, honorary
chairperson of the National Retirement Planning Coalition, before the U.S. House of Representatives,House Committee on Education and the Workforce,February 25, 2004. "
As mentioned elsewhere, we have become a country of the entitled. However, those that persist in such a mindset are in for a rude awakening concerning their retirement. The decisions made today effect the quality of life tomorrow. The future rests squarely where it ought to, in each of our capable hands.
Skip on Social Security: Three Bad Ideas
The other morning I listened to a portion of an interview with Skip Humphrey. Skip, the former Minnesota Attorney General and former candidate for governor, is now apparently the head of the MN AARP. Given his new position, he was pontificating about Social Security. Of course, Skip and the host were bashing the White House’s Social Security reform proposals. During the course of the interview, he made quite an amazing statement. He stated that there was no Social Security crisis. Interesting. And, by the way Captain, we did just hit an iceberg, but everything is alright.
As far as reforming the Social Security system, he stated that the AARP had some ideas for modifications that could be made to Social Security. Now, I don’t know if these were actually Skip’s ideas or the AARP’s ideas. Irregardless of whose ideas they are, the ideas need some more thought. And, they need to find someone better than Skip to present their ideas. Maybe they should find somebody who actually knows what they are talking about.
The first idea that was presented was that the Social Security Administration (SSA) should be allowed to invest in something other than government bonds. An interesting idea I thought. He is saying that the SSA should be given some investment choices. That’s nice. Of course, just moments earlier, Skip thought it was a bad idea to give individuals the ability to invest their Social Security funds in some different investment options. For the individual it was too risky. For the government, however, it is just fine.
You may remember how in an earlier post, I described the differences between liberals and conservatives. This is a perfect example. Conservatives want to give the individual some authority over their Social Security funds. Liberals, on the other hand, believe the individual is incapable of properly exercising such authority and that only the government should be given the opportunity to pick different investment options.
The second idea was that the Taxable Wage Base (TWB) should be raised. Skip did actually correctly define the TWB, but after that he got everything wrong. The TWB is a dollar limit. Social Security taxes are paid on all wages under the TWB. Any wages above the TWB are free from Social Security taxation. Skip got that right. But, then he continued with his description by saying that the TWB was around $84,000. Skip is apparently a couple years behind the curve. In 2002, the TWB was $84,900. The TWB for 2005 is actually $90,000.
This brings me to the next inaccuracy. As you can see above, the TWB increased from 2002 to 2005. Skip is obviously unaware of this, because he went on to say that the TWB should be indexed for inflation. Good, idea Skip. Unfortunately your just a bit late. The TWB is already adjusted each year for inflation. Every year a Cost-of-Living Adjustment is made to the TWB. Back in 1995 when I started working in a field that required I know about the TWB it stood at $61,200. So, since I started following it, the TWB has increased 47%. On average, since 1995, the increase in the TWB has been 3.95% per year.
Just so you know, Skip suggested that the TWB should be around $140,000. Again, an interesting idea. Let me see if I have that right. Skip is proposing a 7.65% tax increase but only on individuals making between $90,000 and $140,000. Hold onto your wallets America.
The final idea that Skip mentioned was that everyone who works should pay into the system. That sounds good on the surface but there is more. Skip continued by saying that all federal and state employees, who currently don’t pay into the system should. The rules for federal and state and local employees are very complex and would take far too much time to explain. For right now, however, all you need to know is that a certain number of these employees are not covered by Social Security or receive reduced Social Security benefits because they are covered under their own system. While making these employees pay into Social Security would bring in additional funds, it would also bring additional employees onto the Social Security rolls, which would only add to the problem. Unless Skip was planning to make these employees pay in without giving them any benefits.
I will be the first to admit that reforms to the Social Security system are needed. I also believe that neither the right nor the left has the perfect solution to this problem. The solution will come as the two sides debate the issue. This debate will cause the best ideas to rise to the top where they can be crafted, polished, and put into place. There is, however, one requirement to this great process. If you want to join the debate and put your ideas forward, you need to have clearly thought out your ideas. You can’t just throw out the first idea that comes into your head. Clearly there are problems with Skip’s ideas. He should be sent away to do some more thinking before he is allowed to join the debate again.
Seasonal Musings
The Christmas Season is officially in full swing. The stores are crammed full of shoppers, party invitations are piling up, and our mailbox is once again full from well- wishers. The children’s enthusiasm is at an all time high. Imagine an epileptic at a disco and you pretty much get the idea. Whoever said that Christmas is for kids, probably didn’t have any; but if they did, they obviously weren’t paying close enough attention. For the manifold chores that come with parenting, God seems to balance the ledger with the simplest of pleasures, the bewilderment and awe that comes from discovery. The wife and I find immense satisfaction in watching our children’s excitement. Half the time and most of the year, their fervor is rooted in something we adults take for granted or count trivial. This, in and of itself, should give us pause as we reflect on the moments that constitute our lives. I remember the rush of exhilaration that I felt when first telling time or strapping on skis. Essentially, the joy of discovery for our children is the joy of rediscovery for us, and at no other time is this probably felt more acutely than at Christmas.
The magic of Christmas is all about anticipation. It is worthy to note that anticipation is intimately acquainted with ritual, and
ritual is fundamental to our experience of happiness. Initially, it is the anticipation of the first real snow. Knee deep, backbreaking, bone chilling, wonder from heaven it is. The ecstasy of the moment is interrupted by the sudden departure of faculties, as the wife and I peer into the glazed frost in each other’s eyes. Quickly, we contemplate how expediently we can bundle up the troops and start the adventure. Anticipation has moved to THE TREE. Having no regard for frostbitten fingers, we head off into the wonderland that is a Minnesota winter, in search of the perfect tree. Do visions of
Griswolds dance in your head? Trust me, we’re not far off. Although, the last couple of years have been a bit strange as the discovery of the tree precipitated the snow’s arrival, so the ritual has been slightly askew. Arriving at our customary place, the family is delirious with choices. There are tall trees & short trees; fat trees & skinny trees; trees that are prickly and trees that are soft. That’s right, I said soft. A connoisseur of the needle I am. After much searching and a few tears shed over the hopeless fact that I will never be able to fit my first choice into the house, the saw comes out. I learned early on, that you always bring your own saw. Otherwise, you will huff and puff, sweat through your gear and be tempted to use language that would make a cardinal blush.
Once home, the real fun starts, as the tree, still angry from its removal from the forest, refuses to take its proper abode in the stand. After much consternation and more sawing, the tree complies. Then the decorations! The kids are exuberant as they prepare to hang the decorations, but wait…the lights.
For eight Christmases, we’ve enjoyed stellar performance, hardly a flicker. Burnt bulbs, easily changed, a strand here or there, no problem. Ok, I’ll admit it. After successfully defying the odds for such a long time, I became a bit cocky, and so I suppose I deserve the humbling of 2004. This year the lights failed. “Well at least it happened before the other decorations were on,” I said calmly. The troops grew restless. A quick trip to the
humbug store to purchase new lights ensues. Bonus! They’re on sale! The requisite purchase follows and soon the children are lovely again as they are busy placing decorations on the tree. All done, the wife and I bask in the glow of our handiwork. Love every minute of it.
Days go by and anticipation becomes focused on the substantive hope of this season—namely, the advent of our Lord. It is the most lovely of times. Carols in church and of course the Christmas program. The kids and choir do a great job. My shy child sang her heart out and as she left the risers exclaimed, “That was fun!” Elation! The eldest child concluded his chorus of
Gloria's with a little air guitar. Classic move. Not sure if it would sit well with Chadwick, the carols translator. Oh well, his father is a product of the Eighties! Either way, it is a truly great day when you get to experience the joy of children singing praises to the One who alone is worthy. And you know, it’s funny how things work out. As we've focused our hearts in our celebration of the Light Of The World, over half of the lights on the tree have gone out.
How I use calculus in everyday life
I really need to stop listening to liberal talk radio.
Hugh is on vacation and someone was filling in for him. I took the opportunity to listen to what the loyal opposition was saying. I shouldn’t do it though. My ride home is supposed to give me some decompression time which allows me to make the leap from Mr. Squirrel, the sophisticated businessman, to Daddy, the human jungle gym. Instead when I listen to liberal talk radio I end up frustrated and baffled. On the bright side, I do usually get some ideas for things to write about.
Take last night, for example. Wendy Wilde was apparently discussing schools misusing education dollars with one of her callers. You’ll forgive me, but I tuned in half-way through the conversation. Anyway, this caller was complaining about how some school has giving laptop computers to the seventh and eighth grade students and how this showed the school was mishandling its money. Now, to be fair, Wendy correctly pointed out that the computers were part of a grant from Apple Computers and that the school was probably paying in the neighborhood of a hundred dollars for the computers, which was a good deal. The caller disagreed and stated that even the hundred dollars could have been better used elsewhere. Of course, the caller was later ridiculed as being anti-technology and it was suggested that he probably would have been against the purchase of calculators years ago, which I thought was a bit mean spirited.
Once again, the left does not understand the problem. The problem is not mismanagement of funds, although some schools may be doing that. The problem is that in too many schools the education system is wasting the student’s time and not teaching that student the basic fundamentals that will be needed to advance through the educational system and through life.
At one point, Ms. Wilde gave the tired old argument that the students need these computers in junior high in order to be able to compete with the rest of the world when they finish school. I hate to shatter her little world, but computers in junior high will not help our students compete. Even if a student gets to have a laptop computer in junior high, their career options upon graduating from high school will still involve wearing a hair-net and being proficient in the use of a spatula. What our students really need is to be educated in such a way that they will learn to think. Their minds, not their computer skills, need to be developed to enable them to proceed further in the educational arena.
What too many people forget is that a computer is just a tool and that an idiot who knows how to use a computer is still an idiot.
I remember how I was taught mathematics. In the earlier grades, we were not allowed to use calculators. After all, a calculator only provides you with the right answer. It doesn’t teach you how to get that right answer. Then, after having learned the fundamentals of mathematics, we were allowed to use calculators as we were taught more advanced mathematics. Finally, as I studied calculus and some of the higher levels of mathematics using a calculator was no longer an issue, because in order to properly use a calculator, you had to have the knowledge to correctly enter the problem. The calculator was no longer a crutch that gave you the right answer. Instead, after years of learning mathematics, the calculator became a tool that assisted me in my calculations.
I am not saying that computers should not be used in schools or that students should not be taught how to use computers. What I am saying is that computers should not be used or taught at the expense of the science, math, literature, history, and other fundamental topics. Students need a solid educational foundation that will enable them to successfully and productively use tools, such as computers, that will help them to advance. Without this foundation, students will end up only using their computers to play Wolfenstein or HALO.
Now these educational fundamentals may not always be exciting. But, schools need to stop trying to entertain the students and start educating them. That, however, is another topic for another time.
When I was back in school, I can remember kids saying, “why do I have to learn this stuff. I’ll never use it in real life.” Now, I guess it is true that my current employment does not require me to solve quadratic equations or determine the area under a curve. My job does, however, require that I think. So, while I may not be using the exact subjects that I learned in school in the real world, I am using the skills that I learned and the work ethic that I developed in school.
Having the proper technology for our children is important. But what is more important is that we must teach our children to think. Because, in the words of Descartes, “Cogito ergo sum.” “I think, therefore I am.”
A Winter's Afternoon With Bobby
Have you ever had a moment in your life when you knew you had changed? I've experienced such mile-marker moments at various times in my life and what follows is a description of one of those life altering occasions.
Following Christmas of 1992, I found myself in a new job. I anticipated that it would be quite a stretch as I was a pretty green college student, who had very little exposure to the field. I had just commenced my postion as a program counselor in an Intermediate Care Facility (a group home). In this capacity, it was my responsibility to provide direct care supports to developmentally disabled adults, who manifest a wide variety of maladaptive behaviors. As a suburban kid from private school, I had virtually no exposure to people with disabilities, and little did I know how much my life was about to change.
It was here that I met Bobby. He was a magnetic, energetic, middle-aged man, exhibiting some of the more profound behavioral challenges within the home. For whatever reason, Bobby liked me and we became fast friends. Life before the home had not been easy for Bobby. As so many people of his generation, he had spent a good portion of his life institutionalized. The horrors he endured in that place cannot be mentioned here. Suffice it to say, Bobby is a survivor and whatever the experiences, I am thankful the enlightened of that time had no such thing as a
Groningen Protocol to guide their thinking or their treatments. If they had, our world, and my life in particular, would be so much darker. Stick with me for another moment or two.
January of 1994, was an interesting time for me. I had worked at the home for a little more than a year, and was having a great time there. Personally, things were a little more difficult, and I found myself feeling rather depressive. It was during this time that I really
got it. I mean it truly sunk in - as to what a friend Bobby was/is. Even more than that, was the realization that whatever I gave of myself, it was returned to me in an exponential fashion from those I sought to serve. I vividly recall one particular Saturday afternoon. I was coming off a hard week. I had taken exams, turned in papers, lead floor activities (I was the RA) and I had worked a lot that week as well. Needless to say, I was a bit depleted. As was the customary ritual, I prompted my friend to consider the sensation in his bladder and attend to his subsequent need. Some assitance was required, and I found myself in the usual place, sitting along the tubs edge across from him. In the privacy of that moment, I felt the world crash in and I quietly blinked back the tears that were brimming. Bobby, the ever astute observer, tried to make eye contact to see if I was ok. Feeling a bit embarassed, I attempted to avert his gaze until I felt his hand on my shoulder. I looked up at Bobby, and as our eyes met, I could see the concern on his face. He softly began to coo at me. I was overcome. Here was a man, with a vocabulary of less than 10 words, communicating at the most powerful level - heart connectedness. Society had assigned him minimal value. Professionals from his past had stated that he couldn't communicate; yet Bobby looked into my eyes, and in so doing, saw the raggedness in my soul. He recognized my need and did everything in his power to ameliorate my weariness. It was a transcendent moment in my life and has lead to over a decade's worth of work with people with disabilities.
Squirrel, in a recent post, decried the direction western civilization is headed. We are, as Robert Bork so keenly describes,
Slouching Towards Gomorrah. There has been a dramatic shift in the regard for human life within our civilization. This shift was appropriately delineated by David Allen White on a subsequent broadcast of Hugh's show. Specifically, the
Hippocratic oath , as it is now sworn, no longer requires the physician to pledge that he/she will not preform an abortive procedure. This is the first crack in the overarching principle of "Do No Harm". The law of incremental change reveals the slippery slope concerning the regard of human life. What began [in America], as abortion for cases of rape and incest, has eroded to an abortion on demand ethic. As White correctly observed, society has now, in effect, moved from arguing the sanctity of human life for the more favorable (globally) argument for quality of life. The consequence of which, is disastrous. Such thinking, brought civilization human experimentation in the camps as
Powerline teased out; making the obvious nazism connection. Once begun, where does this stop? Say good-bye to the
defective in society. Now, doctor's can (and in some instances do), override familial desires by euthanizing out of a concern for the patient's quality of life. One quickly ascertains that the concerns physicians will be attending to, will be that of the insurance company and/or state. Squirrel, rightly warns of such involvement as does
Froggy Ruminations. Imagine a life where the Bobby's of our world are never given a chance. Neither are the Stevie Wonder's, or the Ray Charles, or the Helen Kellers, or Joni Earkson-Tadas. So many of humankind's greatest achievements, regardless of the discipline or art, have been born out of the human experience. The fabric of such experience is diverse and imperfect. It contains triumphs and tragedies, immense joy and profound pain, and sometimes immense joy in the presence of profound pain. There isn't a perfect template for existence this side of eternity. It is not difficult to comprehend the impossibility of maintainig an exhaustive list of the gifted imperfect. Again, I ask where does it end? Mr. Bultitude has observed elsewhere, that the natural conclusion to such thinking is the widespread practice of eugenics. "Let us create the perfect, the Arayan". I'll leave it to the good professor for a more thorough discussion on this. In the meantime, the Groningen Protocol, and the thinking on which it is predicated, frightens the heck out of me. It ought to scare you as well.
Today, I met a great man
I finally got to meet him. I met James Lileks. (insert awe inspiring music here) I know I sound a little bit like a star-struck teenager … o.k., I sound a lot like a star-struck teenager.
I read
“The Bleat” every day. I read his columns in the paper. I now own one of his books (note to self: buy the other book). I even time my commute home on Mondays so that I can listen to him on
Hugh Hewitt’s show. Based on this information you either think that I am a big fan or very sick individual in need of professional help. Well, I can assure you that I am big fan (twitch, twitch).
His writing is great. His sense of humor is even better.
I also connect with him when he writes about Gnat, his daughter. My daughter will turn four in a few days. So, when he describes the cute things his daughter is doing or tells about the questions she is asking, it really hits home for me.
I was reading “The Bleat” whenever I could earlier this year. But, I truly became hooked after reading about how he had to get rid of the wasps that had taken over Gnat’s play house. I was laughing out loud at work. I too had just had to get rid of a wasp nest on our house earlier that week and his description was accurate to the last detail, including what I/he was thinking while I/he was attempting to destroy the nest
It was also Jim (and Hugh) that got me started blogging. I think it was even a conversation with Grisby in my back yard about something that Lileks had written this past summer that got us thinking of starting a blog together. And in my very first post, I attempted to use some “Lilekian” tone and humor in my writing. He is in no danger from me.
But, today I got to meet him. I enjoy his writing and he is inspirational in my blogging. So, I figure I can be a little star-struck. He was a little shorter than I expected. Although when your almost six-four, everyone tends to be a little shorter than you expect. Jim was pleasant and took time to chat with everyone. As I waited in line, I told myself, “when you meet him, don’t say anything stupid.” To my relief, I didn’t. We talked, he signed my copy of his book and I was on my way. It was a day to remember.
And please everyone, if you haven’t already, go out and by a copy of Interior Desecrations. If you have purchased a copy, buy another. They make great gifts. After all, Gnat needs to go to a good college.
Jim, if you are reading this, you are the greatest and I hope I haven’t inflated your ego too much. And no, a restraining order will not be necessary.
The Downward Spiral of Humanity
Last night,
Hugh Hewitt discussed a horrific story that had just hit the news wires. It was reported that doctors in the Netherlands had actually euthanized several babies and that they were establishing guidelines that would constitute a legal framework allowing such procedures to continue. The Netherlands was the first country to legally allow terminally-ill adults to consent to euthanasia. Under these new guidelines, however, an independent committee would make the decision for those who are incapable of doing so. Humanity has sunk to a new low.
I remember debating this topic in college. I find it interesting that those who opposed euthanasia often described how if we allowed for adults to be euthanized, it would eventually spread to the mentally impaired, those with debilitating illnesses, and whoever the government decided were no longer fit to live. Supporters, of course, argued that opponents were taking their parade-of-horribles argument to the extreme. Euthanasia, they assured us, could be controlled and that it would never advance to the examples of the holocaust. Well, it has begun. We are now headed on a downward spiral that, if left unchecked, will be devastating for the human race.
As I was listening last night, I foresaw a possible scenario that could develop if these procedures are embraced and spread beyond the boarders of the Netherlands.
What has been and looks to be one of the biggest political issues in our country? What issue do many in this country feel needs to be addressed immediately? It is the rising cost of health care.
I can see it now, especially if someone from the insurance industry makes their way on to the committee that decides life and death. It will no longer be just an issue of whether the person is suffering or whether they will be productive. Instead, the committee will examine how much it will cost to keep that person alive. They will run a cost-benefit analysis. It will be sold as a way to help reduce health care costs.
Now those who support euthanasia will argue that I am being outlandish and extreme. But then again, ten years ago it would have been outlandish and extreme to think that babies would be euthanized.
Stay healthy. Stay very healthy.
