Tag Archives: budgeting

The Keating Five

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I am sure that the Democrats would love for us all to forget this chapter in American history. I would hope that those of us that know, especially those of us that remember first hand will never let them forget it. Let us keep reminding them on a regular basis. We do not want this memory to fade away.

We should have learned some important lessons, and we ought not to forget them. First, heroes do not always make good senators. Second, just because a man is a good pilot does not automatically make him a good representative or senator. Third, it also does not insure their honesty or integrity.

John Glenn was a hero and an astronaut. John McCain was a notable figure from Vietnam. However, the two of them, along with Alan Cranston, Dennis DeConcini, and Donald Riegle, hatched a financial plot that rocked the financial fodations of the country to the point that we no longer have savings and loans. There is no doubt in my mind that they should have all gone to prison. The three non-heroes did, but not for long. My best guess is that they didn’t want to incarcerate a war hero and an astronaut. If it were all revealed, my guess is that none of them would have spent another day inn the Senate.

They interfered with investigations involving large savings and loan establishments, which eventually collapsed. Conveniently, Glenn and McCain were cleared and served no time. My money is on the fact that their hero status kept them out of prison. Well, there may have been some conversation and some bribery going on. That part we will never know. I can’t even hazard a good guess. However, I wouldn’t doubt for a minute that large sums of money exchanged hands.

The net result is that the Savings and Loans went the way of the dodo bird, which, for the most part forced us all to go to banks for doing all of our savings and receiving all of our loans. This was something of a windfall for the banks, especially since the savings and loan establishments were the primary compilation for the banks. When this all happened, I had to move my checking account from my savings and loan to a bank, which was not at all happy with. My S & L just went away. They never asked what I wanted. I don’t think they wanted to know.

And, the Keating five. Well I don’t think they cared either.

It would seem the feds just can’t resist the urge to get their mitts into the financial institutions and cause mismanagement every couple of decades. And it’s us that suffer. Those in government that mess things up never pay the costs.

Neither Glenn nor McCain did either.

Government Paychecks

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I guess I was in high school when it first occurred to me about folks drawing paychecks directly from the government. Many more draw their pay indirectly from the government, such as working for companies deriving the majority of their income from the government.

Many will ask why it should make a difference. Others will suggest it is a good and honest way to make a living. I guess to some degree both are true. However, I like to consider it scaled down.

Consider, a town of 100. Would it be a good thing that 50 of them draw paychecks from the other 50? Is it a good thing that only 50 of them do productive work?

I am being extreme, of course in making my point. It just is that with the small numbers, it is easier to comprehend what happens when someone draws a government paycheck.

The fact is, big government is expensive. Extremely big government is extremely expensive.

I look around and what I see, is extremely big government. To some, it might not seem so but we must remember, every person deriving a paycheck from the government means more taxes. That is to say, the others of us must provide for them, food, shelter, and so forth.

Certainly, some things must be done by governments. Consider The Department of Education. It has 4400 employees and a budget of 68 billion. Why? How many of them stand in a classroom and teaches… or makes a measurable contribution. I truly suspect that if the entire department went away, hardly anyone would notice. Well the National Education Association to be sure. The two of them are joined at the hip.

The thing is, it doesn’t stop there. There is no telling how many people work in each state for some kind of education department. Let’s multiply that by 50 fifty and we’re talking a bunch of people.

Then each county and each major city has their education system. At this point we are likely talking a bunch of folks who make their living educating our children and none enters a classroom.

Actually The Department of Education is a relatively small department. At every level, city, county, state and federal governments we have, law enforcement, courts and lawyers, again multiplied by fifty.

As an aside, what physical product do the lobbyists produce? Oh. That’s right, none. They’re in essence a bunch of parasites making a fortune in bribery. Going back to our little 100 person community, just what purpose would they have there?

Yet, if we ask every government employee at every level to justify his job, they would all be ready with an answer. Well, almost all of them.