Carrier economics

I’m really not a great fan of tax breaks and such to attract or maintain companies, but I’m realistic enough to understand that most states and regions use these as one of the weapons in their arsenal to attract new companies. (Case in point: last year Governor Hogan proposed a ten-year tax break for companies relocating to certain parts of Maryland, but the proposal went nowhere.) So it was with Carrier Corporation, which was supposed to abandon the state of Indiana for Mexico but brought that move to a screeching halt at the behest of President-elect Trump and his running mate, Indiana Governor Mike Pence.

One thing that has been brought out in the general conversation over Carrier’s change of heart was the Trump proposal to punish companies that move overseas. He’s proposing a 35 percent tariff on such firms, so under his idea had Carrier moved its operations to Mexico they would have had a 35% surcharge on their product.

But the incoming President is also advocating for a series of proposals to make America more business-friendly, such as cutting regulations and lowering the corporate income tax from roughly 35 to 40 percent down to about 15 percent. (These are ballpark figures, but that’s okay since Trump only sees these as starting points for negotiation anyway.)

The reason I bring this up is to make the case that all the carrots should be utilized before a stick is ever brought out. It’s patently obvious that America doesn’t make things like it used to, but the factors of why are most important. Just off the top of my head, here are some possible reasons:

  • Overseas labor costs are far cheaper.
  • There are fewer labor and environmental regulations to deal with.
  • China is a larger market overall and is growing in its consumerism.
  • The tax structure overseas is more beneficial.

However, even if all these things are true, it boggles my mind that it’s possible to profit by creating a product halfway around the world and shipping it back here on a slow boat when the most affluent consumers are still in the good old U. S. of A.

And then you have certain advantages we can exploit for ourselves: a first-class transportation system, a ready-made skilled workforce, and sufficient, reliable energy that’s inexpensive. Unfortunately, previous administrations were reluctant to allow companies to use these advantages, so they departed for greener pastures. In the case of labor-intensive products such as clothing, it’s not likely they will be coming back.

But at the same time we are looking to make things in America, it’s worth pointing out that these things that we can make use more and more automation to create. I’ll jump across the pond for this example, but a reason cited for the demise of the long-running Land Rover Defender model (a 67-year run) was that:

Five hundred workers build the car by hand – there are fewer than 10 robots on the whole line; step across to the Range Rover line on the other side of the Lode Lane, Solihull factory and you’ll find 328 robots.

If you assume that each robot takes the place of a single employee (which is probably generous to the employees) that means about 1/3 the manpower built the Range Rover compared to the Defender. The same is true in Detroit and Japan. To a manufacturer, there’s a lot of appeal to automation: it doesn’t take smoke breaks or mental health days, won’t come back from its lunch break drunk or stoned, and won’t go on strike for ever-increasing health care benefits or wages. The quality of work is very consistent, too, and once set up there’s no such thing as training a new hire.

For decades, though, workers have used machines to assist them in creating products – even the assembly line itself was a vast machine that automated the process of moving the frame of the car along as its component parts were added. Plastic products aren’t really created by hand, but by machines that extrude the parts for them – an offshoot of the process is 3D printing. When you come right down to it, the Carrier plant is one where premade components such as a motor, fan, cooling unit, outside shell, and electronics are assembled to create a larger product, which is where the value is added in this case. There’s not a huge amount of skill needed to put these things together – the skill comes from the design of these units to keep up with the demands of regulation, consumer preferences, and profitability. (Apparently the luckless Land Rover Defender stopped keeping up with these demands.)

But no amount of physical skill can overcome the capricious nature of government whim, and this is where Trump’s idea becomes somewhat impractical. Let’s say in three years Carrier decides it has to move production to Mexico, so it becomes subject to the 35% tax. A unit that cost $10,000 will now have to run at $13,500.

On the other hand, Carrier’s competitor Fujitsu, which is headquartered in Japan, may have a price for a similar unit of $11,000 because they have to ship it over. (For the sake of argument, I’ll assume their products are made overseas.) Thanks to Trump’s proposal, they can raise their price to $12,500 – making more profit for their foreign owners yet still undercutting their competition. Similarly, if Trump decides to go full-bore protectionist and slap tariffs on imported items, there’s no doubt everyone else will do the same thing and that will kill our export market.

I understand the frustration Americans have when they perceive China and others are beating us economically because they are cheating. Truthfully, they could be absolutely correct – in the case of China, I put nothing past Communist scum. But the solution is to make China less attractive by making ourselves more attractive, not trying to punish people. If Trump wants his 35% penalty, that should be the absolute last resort once all other efforts have been made to make our nation as business-friendly as possible. Unfortunately, I think The Donald is too vindictive for his own good.

Someone will pay for all these Carrier incentives, and I suspect these far smaller businesses will be the ones who suffer for the sins of others around the world.

Call and response

I liked what I wrote on a Facebook post regarding this article so much that I had to share. It’s illustrative of how one side argues with the other on the topic.

My story begins when I saw this reply, by Karl Shipps. He’s not a friend of mine, but in a quick check of his Facebook page it’s noteworthy that he signed a petition called “Don’t Let Myron Ebell Dismantle the EPA.” (Ebell is a noted skeptic of the idea that mankind is a prime driver in our climate.) Shipps wrote:

This story takes you to a climate change denial website. These people are not to be trusted.

So it sounds like this gentleman is denying the “deniers”? Well, that wouldn’t stand with me so I wrote:

Few deny climate change. What they correctly debate is mankind’s impact on it.

So, piling on was another person, Jim Davis – same general tenor, but in his concession was a more emotional appeal. I guess I was already winning.

Yes, it’s hard to say with 100% certainty that the climate change is due or even strongly enhanced by human activity. However, on a planet on which we ultimately WILL run out of fossil fuels, why not reduce the pollution so we can breathe cleaner air (note the recent terrible pollution in major cities around the world) and stop polluting our fresh water. And do we really want to continue to send our children into coal mines?

All right, I decided it was time to set folks straight with some logic. So here we go:

First off, we don’t send children into coal mines. Adults make a conscious decision to work in the field, particularly when the average starting salary can be $60,000.

But to address the main point: it will be decades or centuries before we “run out” of fossil fuels – in truth, the definition of running out is the point where it’s not economically viable to extract them. (Case in point: there was a recent oil find in Texas of 2 billion barrels, but at this time the price of oil is too low to make it economically viable to extract it.)

And the usage of fossil fuels is what global climate change alarmists truly wish to go after. Anyone with any sense knows that our climate is mainly controlled by the sun: near the equator it’s mainly tropical because of the duration of sunshine over the year and close to the poles it’s extremely cold since days are short. And given that the world has endured ice ages and blossomed during warm periods over the last 2,000 years or more, to believe mankind can affect this with his SUVs and coal-fired plants is pure folly. Nor can we claim what we have is the optimum, normal climate: after all, with a degree of global warming it would open up thousands of acres to food production where the growing season is too short now.

Furthermore, trying to predict weather two weeks out is tricky enough, let alone forecasting the temperature trends a century hence. So I have figured out the game, and our economic progress is best advanced when energy sources are cheap and plentiful.

As I said before, few deny there is climate change – we have thousands of years of recorded history to suggest that it does and will continue to do so. What I “deny” is that our lifestyle has any major effect on it, because the “solution” to climate change always seems to be more government mandate, taxation, and control.

So am I wrong, or out of bounds here?

This is why I don’t object to drilling for oil, fracking, or any other attempt to use the resources our nation and world was blessed with. Over time we have found that fossil fuels are inexpensive and reliable sources of energy, unlike the “renewable” sources that either aren’t reliable (we don’t have constant wind or sunshine, and even a river’s flow can be diminished by drought) or not economically viable without government subsidy or artificial market carveout. This is why we have treaties and agreements that mandate carbon reduction because the market would never do this on its own, nor should it.

The best example of this that I can think of is the common farmer. A century ago he would build a windmill to provide power for his farm, but as soon as he could hook up to electricity as utility companies moved into rural areas, he generally did because it was much more reliable. (Much of this was done through a New Deal initiative which also electrified individual homes as a job-creation measure; that was later expanded for communications. Eighty years later, even though practically all the rural areas of the country have long since been connected to electricity and basic telephone service, the program was again modified for energy efficiency purposes. It’s additional proof that government is less about solving problems and more about self-preservation for bureaucrats.)

To me, logic dictates that global climate change is real but not influenced by man, and that distinction removes any excuse for government to be involved.

Shopping for America

November 22, 2016 · Posted in Business and industry · Comment 

As quickly as Thanksgiving has come up on us, I suppose it should be no shock to find a couple reminders of the holiday season hitting my e-mail box today. It’s even better when they tie in with the manufacturing theme I’ve had of late.

I’m sure I have discussed this a time or two before, but the advocacy group Patriot Voices (the group founded by former Senator and two-time Presidential candidate Rick Santorum) has asked people over the last five years to pledge to buy American for the holiday season. This year they made a different appeal based on the election:

For many years, we have been talking about how supporting the American worker and manufacturing will grow the economy in a way that benefits everyone. We all saw Donald Trump beat Hillary Clinton by being a champion of these issues.

As we enter the Christmas season, millions of hard-working American families in the manufacturing industry or in communities impacted by that industry are struggling to make ends meet.

Rather than wait for Donald Trump to take office and implement new policies, we are going to do what we have done each Christmas for the past four years – ask you to take the Made In the USA Christmas Challenge below and lift up these workers!

Did you know that a large percentage of our Christmas gift dollars go overseas? For every $1 we spend in the USA on manufacturing, $1.81 will be added to the economy. That is a great deal!

Over the time between my receipt of the e-mail and me writing this piece, they have eclipsed 3,000 people taking the pledge. If you figure each can find $100 worth of American-made items they wouldn’t strive for otherwise, hey, that’s $300,000 more for deserving American companies. (They also stress the idea of patronizing small businesses, particularly this coming Saturday.)

Now it’s unfortunate that an outfit I once blogged for called American Certified is no longer around because this was right up their alley. (Hard to believe that was over two years ago now. A lot has changed since then.) But it just so happened that the group that qualifies for frequent flyer miles from my website, the Alliance for American Manufacturing, came out today with their annual Made in America Gift Guide that features one or more companies from all 50 states, and among them is a company from the Eastern Shore:

Maryland: Carlos Santana, Dave Navarro and Neal Schon are among the artists who have partnered with Paul Reed Smith Guitars, which manufactures high-quality instruments at its factory in Stevensville.

They are popular with the local musicians, too.

Needless to say, Scott Paul (the AAM President, who I frequently quote) added his own thoughts on the project:

We know it isn’t always easy to find American-made items at the mall or the big box stores. But by making sure there are at least a few American-made things on your list, you’ll help create jobs and support American workers.

As he noted this comes out in time for Black Friday, Small Business Saturday, Cyber Monday, and the rest of the season.

And speaking of Cyber Monday, I am going to shift gears so abruptly it leaves transmission pieces all over the road. Christmas is roughly the halfway point between baseball seasons and you know I’m jonesing from about September 10 on. (And you would be buying American, even if a percentage of the players come from other nations.)

Interesting to see the Lakewood ticket deal, as these seats will be in what used to be general admission (the old bleachers.)

So as people prepare to shop for their friends and loved ones, just keep these simple things in mind. If you can do it, you may as well buy American. Those people who really believed in what Donald Trump said will certainly tell you that next year your selection of American products will be “yuuuge.”

A more agreeable tone?

The election of Donald Trump was a surprise to most pundits, who were expecting Hillary Clinton to win both the popular vote and the Electoral College. But her plans were spoiled when she lost three states she expected would be her “blue firewall” even if she lost in Florida: Michigan, Pennsylvania, and Wisconsin. Those 46 electoral votes assured her defeat when they accrued to Trump’s column (although Michigan may still switch as a recount is likely required.) Add in a surprisingly lopsided win in Ohio for Trump as well as the expected blowout in Indiana, and the Rust Belt was pretty solidly in Donald Trump’s corner.

Much has been made about the droves of working-class voters that seemingly came out of nowhere to propel Trump over the finish line, and a survey released by the Alliance for American Manufacturing bears this out:

The national survey, conducted by The Mellman Group and North Star Opinion Research (firms that poll for Democratic and Republican candidates respectively) found that 85 percent of those surveyed support a national manufacturing strategy. Support for a manufacturing strategy is robust among both Trump voters (89 percent) and Clinton voters (83 percent).

Manufacturing may have been an election-determining issue, as Trump won manufacturing households by 18 points with Clinton winning non-manufacturing households by 4 points.

It comes as no surprise that by more than a two-to-one margin voters believe manufacturing is critical to our future and reject the notion that high-tech or services could take its place.

“The biggest surprise on election night came from the Industrial Heartland,” (AAM President Scott) Paul said. “Manufacturing is the engine that drives the heartland’s economy. The good news is that Trump and Clinton voters alike want to get it back on track.” (Link added.)

Unfortunately, the survey doesn’t cite the evidence ascertaining the voting patterns of manufacturing and non-manufacturing households, but my presumption would be that a “manufacturing” household is one where a family member either currently works in the sector, is retired from it, or was previously in the sector but lost his or her job. Thousands of voters fit in this category: using my native Ohio as an example, Trump did far better overall than Mitt Romney did in key manufacturing centers like Toledo (Lucas County), Lorain (Lorain County), Cleveland (Cuyahoga County), Akron (Summit County), Canton (Stark County), and Youngstown (Mahoning County).

  • Lucas County: Romney 68,100 (33.9%), Trump 74,102 (38.7%)
  • Lorain County: Romney 58,095 (41.9%), Trump 65,346 (47.8%)*
  • Cuyahoga County: Romney 184,475 (30.2%), Trump 179,894 (30.8%)
  • Summit County: Romney 111,001 (41.4%), Trump 109,531 (43.8%)
  • Stark County: Romney 86,958 (49.2%)*, Trump 96,345 (56.4%)*
  • Mahoning County: Romney 41,702 (35.5%), Trump 52,808 (46.8%)

*winner in county.

In total, Trump amassed 27,695 more votes in these industrial counties, and while he only won 2 of the 6, he averaged a 5.4% improvement overall. Having a little residual knowledge of how Ohio politics works, seeing how Trump was close in the initial count was a good sign for him - oftentimes in the urban counties the closer election districts report first (they are more heavily minority) so a Republican almost always starts out behind. It’s a matter of whether they get too far back to reel in the leader as the suburban and rural precincts begin to come in. And like the Eastern Shore of Maryland, the rural areas of Ohio are also an indicator for GOP candidates who need to rack up totals in the 65 to 75 percent range to make up for the losses in urban counties. Trump did this in spades, garnering an astounding 80.7% in Mercer County along the Indiana border – part of a group of adjacent western Ohio counties where over 3 out of 4 voters were Trump backers. (Of the few Ohio counties that went for Hillary Clinton, just one was a non-urban county and that comes with a caveat – Athens County is the home of Ohio University. Somehow, as a Miami graduate, I’m not surprised.)

It would be my guess that the AAM will be much more Trump-friendly than they may have appeared at first glance as a union-backed creation. The President-elect is promising heavy investment in infrastructure (a priority of theirs) and has a view on trade much more in line with the protectionist playbook the group has created.

And certainly I don’t want to say the manufacturing jobs are gone for good; however, those workers who are of a certain age (basically my age or older) may not share in the rebirth of manufacturing like they hope they might, if only because the ship of state which has sailed since the days of NAFTA and the rampant offshoring of the era will be difficult to turn around right away. Not only are trade and infrastructure key factors, but so is reducing the tax burden on American companies. On the other hand, the prospect of punishing American companies that move offshore may hasten their plans and create more headaches in the short run.

Donald Trump won his electoral votes in the Midwest by promising a return to the good times of a half-century ago, when it was possible for a guy to graduate high school and get a job through family or friends with a union shop that would keep him employed for the next forty years or until he decided to take his pension and retire. Those days are a memory. But we can still be a nation that makes stuff, and it would be to our advantage to become that nation as the world becomes a more competitive place.

The writing game

I wonder if people thought Marita Noon’s final column was actually about me since I hadn’t posted in several days. (However, I did a little work on the site and updated the SotW Tracker page.) But you may recall I made some comments at the end of her post regarding what she had chosen to do in her career beyond writing in and about the energy field.

Something you may have missed earlier this week ties into the plight of the energy worker, and it’s a shame Marita won’t be commenting on it here on my site. On Tuesday the United States Geological Survey (USGS) came out with the news that a west Texas oil field could be “the largest estimated continuous oil accumulation that USGS has assessed in the United States to date.” They estimated 20 billion barrels of oil could be recovered, which would supply our needs for three years just by itself. (Ironically, this field probably lies deep under Marita’s house.) It’s great news, but with a catch: the price of oil needs to rebound to $60 to $65 a barrel to make this bonanza worth recovering economically. According to an oil industry expert quoted by CNN:

Morris Burns, a former president of the Permian Basin Petroleum Association, told KWES the low price of oil - currently around $46 a barrel - means the oil will sit underground for the foreseeable future.

“We are picking up a few rigs every now and then but we won’t see it really take off until we (get) that price in the $60 to $65 range,” Burns told the station.

Many years ago I remember the price of gas getting under a dollar a gallon; this was probably back in the late 1980s/early 1990s. At the time oil had plunged to about $10 to $15 a barrel. For consumers it was great news but for oil companies and workers it was a desperate time. A few weeks before her “retirement” from energy writing and commentary, Marita had wrote what seemed like a counter-intuitive piece concerning the slowly increasing price of oil. But if you look at it from the perspective of an energy worker, the best of all worlds is a price where demand stays constant but profitable. Oil scraping $30 a barrel may have dropped our pump prices close to $1.50 a gallon but it was killing the domestic energy industry (which several OPEC members wanted it to do, as the U.S. is now their major competition.)

By the same token, Marita began her career in the energy field at a time when oil prices were sky-high and we truly needed to work out ways to make ourselves energy independent at a lower cost. (One such idea I played up in the summer of 2008 because it was done with such humor was the “NozzleRage” campaign. Unfortunately, their answer was a government mandate for flexfuel cars and additional requirements for ethanol.) But these prices also came with the benefit of sustaining the industry in such a manner that the fracking revolution created a boom in the energy industry and made previously dormant regions like the Dakotas and west Texas economically attractive again. (North Dakota, in particular, was depopulating prior to the Bakken oil boom because there was little there to attract young jobseekers who were abandoning the state in droves – by 2005 it had the largest percentage of residents age 85 and older.)

And Marita was sharing in that boom – as she noted, her “field of dreams fundraising model” was getting her enough $500 annual donations to provide a reasonable living. But as the industry suffered, her own revenue sources withered and it eventually led her to dismiss her PR person and in the end chased her away. (Had Hillary Clinton won, the result of her withdrawal from the punditry game would likely have the same but surely Marita would have considered herself a failure.)

In a roundabout way, this brings me to a point I began to make the other night: writing for a living is a difficult game at which to succeed. I found this out several years ago when I was out of work and tried to make a go of it – there are too many people out there chasing too few dollars, particularly in general interest writing. When I reviewed political websites during the campaign I openly questioned whether the people some hired to write their copy even lived in the country, which I can do because I have had to compete with people who can live on a few dollars a day. A penny per word nowadays is a huge amount to make for an article, but even if you wrote 5,000 words a day that doesn’t fly in America. Yet on competitive writing job sites you’ll often find people who are willing to take half that – or less – just to write copy. (And that doesn’t count the old adage used to trap aspiring writers who get convinced to write for nothing because “it’ll give you the exposure you need.” Yeah, right. Expect to double your salary every week from that point.)

So when a polished and experienced writer like Marita, who wrote several motivational and Christian books under her maiden name Marita Littauer and the energy columns under her initial married name Marita Noon (she has since remarried, but maintained the name for professional reasons) can’t make a go of it, one has to wonder what’s in it for others in that same predicament?

Now I have never done a “field of dreams” fundraising approach, although I have been known to “bleg” every once in awhile. And it brings a smile to my face when I see someone actually clicked the donate button up top and chipped into my PayPal account. But as I have told you when I left the political party game (and slowed down on my own writing pace to some degree) part of the reason I stepped back was to write a second book – hopefully learning from the mistakes I made with the first one. That will continue nonetheless because I believe I will be making important points and contributing to dialogue going forward. The same also goes for this website – I really meant to write this column Wednesday but was sidetracked for several reasons. So you get it late Saturday night instead.

Sometimes I wonder, though, if my priorities are quite where they should be. Truly I enjoy writing, but I also have to make sure to be a good Christian, husband, stepdad, and employee. So I may never get back to (or even arrive at) the place where some said I had to be to maintain a successful blog, meaning lots of content updated frequently. After all, I often get the opportunity to sell article space on my site for dubious reasons, probably someone else’s marketing scam. I’m not going to damage my brand like that.

But the reason I went into this spiel is to make it plain I can understand why people get so frustrated with the writing game. We seem to be the last thing people need, but I happen to think we are the most indispensable people out there when it comes to making sense of the world. For that reason, Marita’s insight (as well as that of several others I have known through the years) will be missed.

Odds and ends number 83

Subtitled, the post-election edition.

I have a number of items I collected over the last few weeks that I figured I would end up getting to after the election. Well, the election is over so now I can clean out the e-mail box with this handy feature.

Despite Donald Trump’s stated defense of Planned Parenthood (coupled with his vow to defund it) and shaky position on abortion, the head of the pro-life group Created Equal was pleased with the election results and their efforts in securing them.

“Now, we must hold our new president-elect accountable for his promises to defund Planned Parenthood, pass a 20-week ban, and nominate a Constitutionalist to the U.S. Supreme Court,” said Created Equal’s Mark Harrington.

Defunding Planned Parenthood will be a battle since Congress controls the purse strings and a Republican majority couldn’t get the job done in this edition of Congress. And as a reminder: they are funded through September 30, 2017 – the end of the federal fiscal year. Passing a 20-week ban and getting a pro-life SCOTUS justice will also be difficult with 48 Democrat Senators, although eight of them may want to keep in mind that Trump won their state and they are up for re-election two years hence. (In 2018 Democrats face the same minefield Republicans did this time: 23 of 33 Senate seats at stake are held by Democrats, along with two “independents” who caucus with the Democrats.) But I suspect the pro-life side will be disappointed with a President Trump; however, I never thought he would be President either so he may shock us all.

Another group angling for a payoff is my old friends at the American Alliance for Manufacturing, who are begging:

President-elect Trump and Congress must come together on much needed investment that will put Americans to work building and repairing our nation’s crumbling infrastructure. Stronger trade enforcement to address China’s massive overcapacity and a crackdown on countries trying to circumvent U.S. trade laws can boost manufacturing jobs.

Factory workers were more than a prop in this election. Now’s the time to deliver for them.

The signs are there that Trump may be their kind of President: we know he’s more hawkish on trade, and he’s planning on making it possible for up to $1 trillion in private-sector infrastructure investment over the next decade. But it takes two (or more) to tango on trade, so progress on that front may be slow. And the union-backed AAM may not be happy with the infrastructure plan if it doesn’t feature union-friendly rules and prevailing wage regulations. (Maybe this is a good time to repeal the Davis-Bacon Act? I doubt Congress has the guts to.)

But if you thought AAM wanted a tougher stance on trade, this diatribe came from Kevin Kearns, head of the U.S. Business & Industry Council:

Trump’s antagonists (on trade) are Wall Street institutions, multinational corporations, major business organizations, academic economists, editorial boards, business journalists, opinion writers, bloggers, and the generally knowledge-free mainstream media. All are opposed to Trump because they are wedded to a false, outdated “free trade” dogma, which has decimated the working and middle classes.

On Capitol Hill, a minority of Democrats and majority of Republicans are partial to the same free-trade theories. Speaker Paul Ryan admitted as much in his remarks on the election victory, noting that Trump alone had recognized the dire plight of average Americans.

I found it interesting that the LifeZette site has as its editor-in-chief Trump ally (and radio talk show host) Laura Ingraham. But this was the real payoff of the Kearns piece for me:

Trump must impose a Value-Added Tax of 18-20 percent applicable at the border to all imports. Over 150 of our trading partners use such taxes to make American exports pricier in their home markets. We should reciprocate.

So anything we import becomes 18 to 20 percent more expensive? Yeah, that will end well.

Another item in the election hopper was some attempted reform from another guy who I’ve oftentimes cited on my website, Rick Weiland. A “trifecta of reform” his group successfully put on the South Dakota ballot went 1-for-3 the other night. Measures for redistricting reform and non-partisan elections failed, but South Dakota voters narrowly passed a sweeping campaign finance reform package the state’s Attorney General said “may be challenged in court on constitutional grounds.”

Personally, I would have been fine with the two that failed in a broad sense – as a Maryland resident, I know all about partisan gerrymandering and would be interested to see how non-partisan elections pan out. (The duopoly would have a fit, I’m sure.) But this campaign finance reform was a bad idea from the get-go, and it tips the Democrats’ hand on how they would attack the Citizens United decision. One controversial facet of this new law would be a $9 per registered voter annual appropriation to pay for this public financing - such a law in Maryland would be a required annual $35 million appropriation from our General Fund. (The fund Larry Hogan used in his successful 2014 campaign was built with voluntary donations via a checkoff on income tax forms; a checkoff that was dormant for several years but was restored last year.)

And instead of “democracy credits” as this amendment proposed, a better idea would be one I believe Ohio still uses: a tax deduction of up to $50 for political donations. But I’m sure soon a South Dakota court (and maybe beyond) will be ruling on this one.

I also received some free post-election advice from the creators of iVoterGuide, which is an offshoot of a small Christian group called the Heritage Alliance (not to be confused with the Heritage Foundation.)

Pray specifically for the appointment of Godly people as our newly elected President selects his Cabinet and closest advisors.  Pray that the Administration, Senate and House will work together to honor life and liberty as set out in our constitution by our founding fathers.  Pray for ALL elected officials to humble themselves and seek God’s will for our nation.  We need to repent, individually and as a nation, and turn from policies contrary to God’s word.

Pray for unity and peace.  Our country is deeply divided. Christians must truly start loving our neighbors as ourselves so that there can be a spiritual awakening.  Now is not a time to gloat but to turn our hearts continually toward God so we can be examples of His love and work toward reconciliation and unity.  Pray for all nations, as a new stage is being set both nationally and internationally.

I think I can handle that. Oddly enough, this was also a subject of our Bible study prayer group Wednesday – maybe one or more of them is on this e-mail list, too. As for iVoterGuide, what they need is a larger state-level base as Maryland and Delaware aren’t among the handful of states they cover (it’s mostly federal.)

As iVoterGuide‘s executive director Debbie Wuthnow concludes, “we ask you pray about how God wants you to be involved in retaining the freedoms He has so graciously granted us.” I suspect I’m going in the right direction here but one never knows what doors open up.

I was originally going to add some energy-related items to this mix, but I think I will hold them until later this week for a reason which will become apparent. There’s one other subset of items I’m going to have fun with tomorrow – I would consider them odds but not ends. And so it goes.

America needs to use more energy, not less

Commentary by Marita Noon

During the 2016 election, both candidates promised to bring manufacturing back to the U.S. Donald Trump made the recovery of jobs lost to China and Mexico a cornerstone of his campaign. Hillary Clinton’s website states: “While too many politicians and experts in Washington gave up on American manufacturing, Hillary never did.”

“The rhetoric,” reports US News, “has struck home with Americans across the country – particularly those currently or formerly employed in the embattled U.S. goods-producing and manufacturing sectors, who have repeatedly borne the brunt of corporate efforts to move work overseas.”

Because many of the lost jobs are due to automation and technological improvements – which have enabled more production from fewer workers – there is skepticism on both sides of the aisle as to whether these lost jobs can actually come back. However, I believe, most Americans don’t want to see more of our jobs disappear. Harry Moser, founder and president of the Reshoring Initiative, which aims to bring manufacturing back home, is optimistic. He told me that we are now losing about as many jobs to offshoring, as we are recovering: “We’ve gone from losing somewhere around 200,000 manufacturing jobs a year in 2000 to 2003 to net breaking even. Balancing the trade deficit will increase U.S. manufacturing by about four million jobs at current levels of productivity.”

According to MarketWatch.com, the percentage of people who work in manufacturing is at a record low of 8.5% – which compares to “20% in 1980, 30% in 1960 and a record 39% during World War Two.”

While there are many factors driving offshoring, lower wages give countries like China and Mexico a competitive advantage. Energy costs, however, give the U.S. an advantage as “manufacturers need a lot of energy to make their processes work,” stated Gary Marmo, director of sales for New Jersey’s Elizabethtown Gas. He says: “A typical office building will use 5,000, 10,000, 20,000 therms a year. A good sized manufacturing plant will probably use that same amount in just a couple of days.” Electricity frequently represents one of the top operating costs for energy intensive industries such as plastics, metals, chemicals, and pharmaceuticals – and, according to a recent study comparing costs in the U.S. and China, electricity is about 50 percent higher in China.

Because manufacturing is energy intensive, bringing industry back to the U.S. and/or attracting businesses to relocate here, will increase our energy consumption. As my column last week on the Clinton Foundation and Haiti makes clear, industry needs energy.

President Obama has derided U.S, energy use: “The U.S. uses far more electricity than its North American neighbors combined,” but the U.S. also does more with our energy. Comparing the Gross Domestic Product (GDP) and energy consumption numbers for the U.S. and Canada, for example, both use a similar volume of energy but the U.S. has substantially higher GDP. A study of global energy consumption versus GDP found: “energy is so intrinsically linked to GDP that energy policy more or less dictates how our economy performs.”

Mike Haseler, the study’s author, explains: “rising GDP is an indication of a prosperous economy” – which is why economic commentators cite GDP numbers when they say: “President Barack Obama may become the first president since Herbert Hoover not to serve during a year in which the growth in real GDP was at least 3 percent.”  Yet, in the name of climate change, through government policy, many countries are trying to discourage energy use by forcing costs up. Haseler states: “They are cutting energy use as the economy of Europe collapses because European industry can no longer compete with countries where energy prices are not artificially raised by senseless ‘green’ policies.”

The energy advantage is not just an issue between countries, it is a factor in where companies locate within the U.S. “High electricity bills are a strong disincentive to create new jobs associated with a new or expanded product line,” writes Don Welch, president of New Hampshire based Globe Manufacturing Co, LLC. New Hampshire’s electric prices are 55.6 percent higher than the national average. Welch’s company is the leading producer of firefighting turnout gear. He explains: “higher electricity costs not only add hundreds of thousands of dollars to the cost of making our products – firefighting suits and equipment – but it’s money we could otherwise re-invest in the business, including creating new jobs here in New Hampshire. New Hampshire’s high electricity prices are a drag on our economy. It puts New Hampshire companies like mine at a competitive disadvantage compared to companies in other parts of the country.” Because Globe also has plants in three different states, he clearly sees the difference energy costs make in doing business. Welch says: “I already know that the electric bill I am paying at my facility in Oklahoma is half of what I pay in New Hampshire.” If he is going to add a product line, energy costs are a big factor in deciding where to expand.

John F. Olson, president and CEO of Whelen Engineering Company, of Charlestown, NH, and Chester, CT agrees. In a letter to the editor, Olson wrote: “Manufacturers are in competition with other U.S. manufacturers, or even worse, offshore competition in China. New Hampshire manufacturers have the most expensive electricity in the country.”

If we can bring back manufacturing jobs – or at least stem the flow of them from our country – we need to be encouraging low-cost energy and making more of it available. Moser believes: “balancing the trade deficit should be the number 1 national priority.” He told me that would take a 25 percent increase in manufacturing – which would require about a 10 percent increase in energy usage. Yet, climate change policies demand that we take greater cuts than the developing countries like China and India. If our energy costs continue to go up, as they have in New Hampshire, we’ll lose the best competitive advantage we have.

Moser explains: “Manufacturing has the highest multiplier effect among the major sectors. Every job created in manufacturing creates additional jobs in other sectors that supply, support and service manufacturers.”

To bring manufacturing back to the U.S., or encourage expansion, we need energy that is abundant, available and affordable – and we’ll need to use more, not less. If we want to balance our trade deficit, boost GDP, and have a prosperous economy, energy is the key. As I am known for saying: “energy makes America great!”

The author of Energy Freedom, Marita Noon serves as the executive director for Energy Makes America Great Inc., and the companion educational organization, the Citizens’ Alliance for Responsible Energy (CARE). She hosts a weekly radio program: America’s Voice for Energy - which expands on the content of her weekly column. Follow her @EnergyRabbit.

Regarding Delaware statewide races

I have finally come around to the Delaware state races after speaking on Congressional races both in the First State and the First District of Maryland as well as the U.S. Senate race here in my adopted home state. Unlike Maryland, Delaware’s top two statewide offices are elected in separate ballots, meaning it’s theoretical that the governor represents a different party than his or her lieutenant governor.

I will begin with the race for governor, which features four on the ballot and one write-in hopeful. As I have done previously, we’ll go in alphabetical order on the ballot which means the GOP standardbearer leads off.

Colin Bonini (Republican Party)

Key facts: Bonini has held elective office as a State Senator since 1994, which is the vast majority of his adult life as he first won at the age of 24. He also previously ran for state Treasurer in 2010, losing narrowly, so this is his second run statewide. Colin also works in the financial industry for a bonding agency and owns a small venture capital firm. Bonini is 46 years of age. Of the four on-ballot candidates for governor Bonini was the only one with a primary challenger, and he defeated Sussex County businesswoman Lacey Lafferty by a nearly 70-30 margin.

Key issues: Education, Economic Development, Crime, State Budget, 2nd Amendment, Regulations, Personal Freedom and Liberty

Thoughts: In looking at Colin’s platform and some of what he is about, he strikes me as a relatively by-the-book conservative who wants to make government work better yet also has the potential of rightsizing government in a number of ways. Because of the nature of Delaware’s budget, Colin may have the better mindset for a potential pitfall to come based on a recent federal court decision regarding Delaware’s unclaimed property laws. Two definite items in his favor: an advocacy to make Delaware a right-to-work state and a pledge to pull Delaware out of the RGGI boondoggle – a step Larry Hogan should also be taking in Maryland to relieve pressure on state utilities.

John Carney (Democrat Party)

Key facts: Carney was supposed to be governor eight years ago (as the survivor of the Democrats’ primary is the odds-on favorite to win) but he was displaced in the primary by now-outgoing Governor Jack Markell. Carney was the favorite because he served eight years as the Lieutenant Governor under fellow Democrat Ruth Ann Minner, but voters rejected him in 2008. He’s also been the state Secretary of Finance and the deputy chief of staff for another former Democrat governor, Tom Carper. But when the Delaware Congressional seat opened up in 2010 because Mike Castle wanted to move up to the U.S. Senate, Carney was Johnny-on-the-spot and bucked the TEA Party trend sweeping the nation as one of just a handful of newly elected Democrats. Like many other Democrats running, Carney has spent practically his whole adult life in government, although he briefly served as the chief operating officer of a wind energy company during his downtime from being LG to winning the Congressional seat. Carney is 60 years old.

Key issues: John’s “Vision for Delaware” includes sections on The Economy, Education, State Budget, The Environment, Healthcare, Criminal Justice, and Agriculture.

Thoughts: Truth be told, his is not the worst, most liberal platform out there (although it definitely has its pitfalls.) But the overarching problem with state assistance in a number of areas is that it becomes state control rather quickly. Carney’s policies to me come off as Wilmington-centric, which addresses the population as currently comprised but fails to account for the growth area of the state, which would be Sussex County. (Kent County is also growing faster than the state average, which is held down by New Castle County and Wilmington.) It’s likely Carney would govern in the same manner that Jack Markell has done – business-friendly enough to please those interests, but liberal enough to keep the machine which has propped up his political career for most of the last 35 years backing him.

Sean Goward (Libertarian Party)

Key facts: Goward is an Air Force veteran who made a lengthy career of it before retiring two years ago. Now he works as a railroad signal technician. Goward is 37 years old and making his first run for political office.

Key issues: Education, Civil Liberties, Criminal Justice Reform, Fiscal Policy, Accountability

Thoughts: Goward has some interesting ideas about the state of the state, but they seem to be lost when he makes civil liberties and criminal justice reform priorities over the economic issues people truly care about. I know that Libertarians are for smaller government, but where Goward fails in making the sell is relating the benefits of limited government to the voters of the state. It’s one thing to promise to cut spending in half in four years, but the reality of the situation would dictate a much less rapid winding down as well as an education course on why this would be a good thing. Also, Goward hasn’t updated his site since April so why should I take him seriously?

Andrew Groff (Green Party)

Key facts: Like the other Delaware Greens, Groff doesn’t have a formal website. What I did find is that he is 58 years old, and while he’s not run for governor before he ran for the U.S. Senate seat in both 2014 and 2012 – the 2012 race was run with the additional blessing of the Delaware Libertarian Party.

Key issues: From the limited reading I have, Groff is well entrenched with the Green Party line which would entail a much larger government.

Thoughts: As a party, the Green Party barely made the 636 registered voter cutoff for ballot access this year. (As a comparison, Maryland has 8,614 registered Greens in a state about sevenfold Delaware’s population.) So it’s not like Groff will make a large dent, but the fact he’s not making it easy for people to learn about him makes things even more difficult.

There is also one write-in candidate for governor by the name of Benjamin Hollinger, Sr. but I found nothing on him. So I will turn to the two LG candidates.

La Mar Gunn (Republican Party)

Key facts: Perhaps he’s one of the few Republicans to be the head of a local NAACP chapter, as he leads the Dover chapter. Gunn ran for the Kent County Recorder of Deeds in 2014 and won the vote on election day by two votes, but four non-identical recounts later (two of which expanded Gunn’s lead and one that was a flat tie) it was deemed in court that the office was vacant, and Governor Jack Markell appointed his fellow Democrat. Gunn is a financial consultant by trade.

Key issues: Placed under two non-specific categories, “Jobenomics” and Fighting for Delaware.

Thoughts: Jobenomics is a carefully thought-out plan, but it’s way more complex than the average person wants to consider in a political context. If he could have boiled it down to a couple pages and related it to actual policy it may have been more helpful. As for the rest, it’s extremely skimpy. Granted, lieutenant governor may be a “bucket of warm spit” position (as evidenced by its vacancy over the last two years) but I think there needs to be more of an accessible platform for people to understand.

Bethany Hall-Long (Democrat Party)

Key facts: Hall-Long is one of the few Delaware candidates to be born in Sussex County, although she has spent the last 14 years in the state legislature representing portions of New Castle County. However, she spent several years outside the state, particularly in the Washington D.C. area (her husband was stationed in the Navy) and served as a Fellow in both the U.S. Senate and Department of Health and Human Services. She has a background in nursing, is 52 years old, and won a six-way primary for the LG nomination with just 29% of the vote.

Key issues: Jobs and growing the economy, Health, Education, Environment, Infrastructure

Thoughts: When I read the word “invest” four times in five paragraphs, I know I have to hold on to my wallet. Yet while Gunn is remarkably detailed in one area until one’s eyes glaze over, the platform of Hall-Long has the depth of a cookie sheet. And while I am not a grammar Nazi, I must say whoever wrote the copy for her website needs lessons in sentence structure. Again, there’s really not a great deal of function to the position but Hall-Long has some of the worst platitude speaking I’ve seen in this campaign. She may be a mom, a nurse, and a state senator but I have to wonder how much she knows about the role of government.

As far as those I would recommend to Delaware voters, there are really two clear-cut choices here. Since Colin Bonini knows John Carney fairly well, he can keep John around as an advisor on business issues. But the more aggressive job creation approach from Bonini is the one Delaware needs right now. And having a laserlike focus on job creation isn’t the worst thing in the world for a lieutenant governor to have, either. Remember, I’m looking at this not as a voter (because I live in Maryland) but as one who wants the First State to succeed because my employment depends a lot on it. The more people find Delaware attractive, the better chance my employer succeeds.

And I didn’t forget about Insurance Commissioner, but that balloting isn’t one that’s really important to me right now. So I have no opinion on it.

So if you are a Delaware voter, it’s in your best interest to vote for Colin Bonini and La Mar Gunn on Tuesday. They are clearly the better choices in their respective fields.

Haiti needs electricity. Hillary gives them a sweatshop (and her foundation gets a new donor)

November 1, 2016 · Posted in Business and industry, Campaign 2016 - President, Marita Noon, National politics, Politics · Comments Off 

Commentary by Marita Noon

Until Hurricane Matthew hit Haiti nearly a month ago, on October 4, the impoverished island country was out of the headlines – pushed aside by election news. But new emails which were obtained through a Freedom of Information Act lawsuit by the Republican National Committee and then shared with ABC News, made public on October 11, make Haiti part of the U.S. election news, as they highlight the cozy connections between the Clinton Foundation, Hillary Clinton’s State Department and the Clinton’s cronies. The corruption that has been brought to light is nothing short of scandalous – though, since it’s merely one more such story, few are probably following it.

I’m aware of this new information due to my multi-year collaboration with Christine Lakatos and her Green Corruption Files. She alerted me to the “bombshell new evidence” and she now has a full 26-page report available.

Hurricane Matthew made clear that the billions of dollars that poured into Haiti after the 2010 earthquake did little to help the 1.5 million people who were displaced when the 7.0 magnitude earthquake destroyed their homes in 2010. According to the New York Times, 55,000 people were still living in shelters when Matthew hit. However, earlier this year, HBO’s VICE newsmagazine series did a segment titled: The Haitian Moneypit. In it, Vikram Gandhi takes viewers through the deplorable conditions found in the refugee camps that have no electricity, fresh water, or functioning toilets. He claims: “hundreds of thousands of survivors are still displaced.”

Gandhi says that despite the $10 billion in relief that came into Haiti after the earthquake, “many parts of Port-au-Prince still look like the earthquake struck just yesterday.” He addresses the Zoranje model home project – described as a $2.4 million dollar showroom and the first approved reconstruction project headed by Bill Clinton and the Interim Haiti Recovery Commission. However, Gandhi reports, the homes were unsuited to Haiti. Once the expo was over, zero homes were built for Haitians. Today the model homes are occupied by squatters who live in the makeshift village without plumbing or electricity.

Perhaps the homes were never built because the companies didn’t donate, or didn’t donate enough, to the Clinton Foundation. In his film Clinton Cash, Peter Schweizer relays a story about a Florida firm with extensive disaster relief experience. The company spent $100 million getting equipment into Haiti, but only made a small contribution to the Clinton Foundation. The company didn’t get any relief contracts. Many contracts went to relief organizations that were also involved in the Clinton Foundation - which brags about its role in Haiti.

Lakatos explains: “In digging through over 1000 emails from Hillary’s State Department related to Haiti, I discovered additional damning proof that the Haiti ‘reconstruction plan’ was a huge pay-to-play scheme for filling the coffers of the Clintons and their cronies.” She continues: “We now have an ocean of evidence confirming that our former president Bill Clinton and his wife, then-Secretary of State Hillary Clinton, exploited the poor Haitian people in the wake of the 2010 earthquake.”

In 2015, in an article titled The King and Queen of Haiti, Politico summarizes: “The amounts of money over which the Clintons and their foundation had direct control paled beside the $16.3 billion that donors pledged in all.”

While Lakatos’ complete report provides details with links to the supporting documentation, due to space here I am jumping to what I believe is the most dramatic example: The Caracol Industrial Park (CIP) – a $300 million project that was planned before the 2010 earthquake and was built in a part of Haiti that was not impacted by the earthquake (therefore not helping the victims.) The CIP was originally lauded by Secretary Clinton as creating 100,000 new jobs in Haiti, but got revised down and down – with current jobs at a dim 8000-9000.

The comingling of players, companies and organizations is overwhelming – but one of Hillary Clinton’s closest confidants, Cheryl Mills, is at the center of it. Addressing the project and the Clintons’ “public-private web,” the New York Times (NYT) states: “Cheryl D. Mills worked ceaselessly to help a South Korean garment maker open a factory in Haiti, the centerpiece of United States government’s efforts to jump-start the island nation’s economy after the 2010 earthquake.”

In short, “Sea-A Trading secured millions of dollars in incentives to make its Haiti investment more attractive,” writes NYT. Sea-A Trading’s chairman Woong-ki Kim became a Clinton Foundation donor after his firm secured the lucrative contract in Haiti. NYT calls Kim: “the sort of enlightened global capitalist the Clintons favor.” Adding to the intrigue, when Mills left the state department, she started a company called BlackIvy Group – for which Kim is a financial backer. NYT describes the relationship this way: “The partnership with Mr. Kim sheds light on the business activities of Ms. Mills – a longtime Clinton loyalist who is likely to play a significant role in any future Clinton White House – as well as the interlocking public and private relationships that have long characterized the Clintons’ inner circle.”

The company makes clothes using Haiti’s cheap labor (roughly $6.85 a day – though reports claim the factory doesn’t pay that much and accuse the factory of sexual harassment, bullying and humiliation.) Workers complain that after they pay for lunch and transportation, they don’t have enough money left to feed their families. Many feel that they were better off farming the land they were thrown off of to make room for CIP.

The primarily female workforce makes clothes for large American retailers, including Walmart and Gap Inc., which get special tax breaks for importing the clothes made in Haiti.  Both companies are Clinton Foundation donors: Walmart has given $1 million to $5 million and Gap has given between $250,000 and $500,000 to the foundation.

Part of the $124 million in “incentives” the U.S. government provided (an unwitting donation from taxpayers) for CIP was to build a power plant to run the factory. While I have been unable to ascertain what fuels the plant, video makes it clear it is not wind or solar that Clinton touts. My research revealed: “Haiti is highly dependent on imported fossil fuels for electric generation.” It is most likely oil-fueled.

The electricity provided by the Caracol Electrification Project also powers some of the surrounding communities. The USAID site features stories of people living with electricity for the first time and elaborates on the dramatic improvement in health and quality of life since the area has reliable power. Many other similar reports exist.

A few months ago, Lakatos and I wrote about Hillary’s clean cookstove initiative: The developing world wants natural gas and electricity, Hillary Clinton sends cookstoves. This story is similar. Haiti needs electricity and Hillary gives them a sweatshop.

Considering the conditions in the Sea-A Trading factory and the hundreds of thousands of people throughout Haiti living in plastic tents and without electricity and the benefits it provides – one must wonder if the hundreds of millions of dollars that went to enriching Clinton Foundation donors, like Kim, wouldn’t have been better spent providing reliable fossil-fuel power to the people of Haiti. Doing so would have boosted the economy and helped families improve their lives. But that’s not how the Clintons operate and their fingerprints are all over the Haiti recovery efforts. Obviously, they have hurt the Haitian people, while helping themselves and their friends.

On November 8, America will decide if this is the kind of leadership we want.

The author of Energy Freedom, Marita Noon serves as the executive director for Energy Makes America Great Inc., and the companion educational organization, the Citizens’ Alliance for Responsible Energy (CARE). She hosts a weekly radio program: America’s Voice for Energy - which expands on the content of her weekly column. Follow her @EnergyRabbit.

Get ready to break wind

Commentary by Marita Noon

If Hillary Clinton becomes our next president, one of the changes you can expect is an invasion of industrial wind development in your community that has the potential to severely damage your property values, ruin the viewshed, impact your sleep patterns, and cause your electricity rates to “necessarily skyrocket” – all thanks to your tax dollars.

The Democratic presidential candidate frequently references her pledge to install 500 million solar panels. Her website promises: “The United States will have more than half a billion solar panels installed across the country by the end of Hillary Clinton’s first term.” And, while we know she wants to make America “the clean energy super power of the 21st century,” finding her position on wind energy is not so obvious. Perhaps that is because, as more and more people learn more about its impacts on their lives, its support continues to wane.

Pragmatic environmentalists find it hard to ignore the millions of birds that are killed by the giant spinning blades – including bald and golden eagles, as well as massive numbers of bats (which are so important for insect control) that are being slaughtered. Some have even “successfully sued to stop wind farm construction,” reports Investor’s Business Daily.

More and more communities are saying: “We don’t want wind turbines here.” For example, in Ohio, a wind project was “downed” when the Logan County Commissioners voted unanimously to reject EverPower’s request for a payment in lieu of taxes to build 18 wind turbines – though since then, the developer is taking another bite at the project, and the locals are furious. In Michigan, the entire Lincoln Township Board opposes a plan from DTE Energy to bring 50 to 70 more wind turbines to the community – despite the fact that four of the five members would profit from easement agreements they’d previously signed.

While not one of her top talking points, a President Hillary will increase the amount of taxpayer dollars available to industrial wind developers. At a July 2015 campaign stop in Iowa, she supported tax incentives and said: “We need to continue the production tax credits.” Previously, she claimed that she wants to make the production tax credits (PTC) for wind and solar permanent. (Note: without the PTC, even the wind industry acknowledges it won’t “be able to continue.”) She frequently says: “I want more wind, more solar, more advanced biofuels, more energy efficiency.” Remember, her party platform includes: “We are committed to getting 50 percent of our electricity from clean energy sources within a decade.” And: “We believe America must be running entirely on clean energy by mid-century.”

So, if your area hasn’t been faced with the construction of the detrimental and dangerous turbines, you can expect that it will be – even if you live in an area not known to be windy. That’s the bad news. The good news is the more wind turbines spring up, the more opposition they receive – and, therefore, the more tools there are available to help break the next wind project.

Rather than trying to figure out what to do on your own, John Droz, Jr., a North Carolina-based physicist and citizen advocate, who has worked with about 100 communities, encourages citizens who want to protect their community from the threat of a proposed wind project to maximize the resources that are available to them.

Kevon Martis, who, as the volunteer director of the Interstate Informed Citizens Coalition, has helped protect citizens in 7 states, told me: “Nothing makes it harder for a wind developer in one community than if the neighboring community already has an operating wind plant. Once they can see the actual impacts of turning entire townships into 50 story tall power plants, they can no longer be led down the primrose path by wind companies and their agents.” Martis’ equitable wind zoning advocacy has been extremely effective. In his home state of Michigan, wind has been on the ballot at the Township level 11 times since 2009 and has never won. In Argyle Township, in Sanilac County, Invenergy spent $164,000 in campaign funds in the 36-square-mile township, yet the people prevailed at the ballot box.

Two communities in Vermont have industrial wind on the ballot on November 8 and it is playing a big role in the state’s gubernatorial race where many Democrats are pledging to vote for the Republican candidate, who opposes more wind energy development. There, the foreign developer is essentially offering a bribe to the voters to approve the project.

Martis uses a concept he calls “trespass zoning” – which he says is a “de facto subsidy extracted from neighbors without any compensation.” Because the definition of trespassing is: “to enter the owner’s land or property without permission,” Martis argues that wind turbine setbacks, that cross the property line and go to the dwelling, allows the externalities of wind development – noise pollution, turbine rotor failure and its attendant debris field, property value loss, and visual blight – to trespass. He explains: “Where the wind developer can use these unleased properties for nuisance noise and safety easements free of charge, they have no reason to approach the neighboring residents to negotiate a fair price for their loss of amenity. Trespass zoning has deprived wind plant neighbors of all economic bargaining power. It has donated their private property to the neighboring landowner’s wind developer tenant.”

Droz agrees that zoning is important – as are regulations. He believes that since an industrial wind project is something you may have to live with for more than 20 years, it seems wise to carefully, objectively, and thoughtfully investigate the matter ahead of time. Droz says: “In most circumstances, your first line of defense is a well-written, protective set of wind-energy regulations that focus on protecting the health, safety, and welfare of the community. They can be a stand-alone law, or part of a more comprehensive zoning document.”

Mary Kay Barton, a citizen activist from New York State, began writing about the industrial wind issue more than a dozen years ago when her home area in Western New York State was targeted by industrial wind developers. Wyoming County was slated to have more than 2,000 industrial wind turbines strewn throughout its 16 Townships. So far, the massive projects have been limited by the outrage of residents to the current 308 turbines in 5 rural districts. Barton told me: “We wouldn’t even be talking about industrial wind if cronyism at the top wasn’t enabling the consumer fraud of industrial wind to exist with countless subsidies, incentives and renewable mandates.”

Minnesota citizen energy activist, Kristi Rosenquist, points out: “Wind is promoted as mitigating climate change and benefiting local rural economies – it does neither.”

Through his free citizen advocacy service, Alliance for Wise Energy Decisions, Droz tries to make it easier for communities to succeed when dealing with industrial wind energy by learning lessons from some of the other 250 communities – including those near Martis, Barton, and Rosenquist – that have had to deal with it.

At WiseEnergy.org, Droz has a wealth of information available including a model wind energy law that is derived from existing effective ordinances plus inputs from numerous independent experts. He advocates a wind energy law that contains carefully crafted conditions about these five elements:

  1. Property value guarantees;
  2. Turbine setbacks;
  3. Noise standards;
  4. Environmental assessment and protections; and
  5. Decommissioning.

Droz, Martis, Barton, and Rosenquist are just four of the many citizen advocates that have had to become experts on the adverse impacts of wind energy – which provides negligible benefits while raising taxes and electricity rates. Because of their experiences, many are willing to help those who are just now being faced with the threat.

Because I’ve frequently written on wind energy and the favorable tax and regulatory treatment it receives, I often have people reaching out to me for help – but I am not the expert, just the messenger. These folks are dealing with it day in and day out.

Here are some additional resources they suggest:

If the threat of industrial wind energy development isn’t a problem for you now, save this information, as it likely would be under a Hillary Clinton presidency.

Barton explains: “My town was able to stop the ludicrous siting of these environmentally-destructive facilities by enacting a citizen-protective law back in 2007. Since then, however, Governor Cuomo enacted what I refer to as his ‘Power-Grab NY Act,’ which stripped ‘Home Rule’ from New York State communities and placed the decision-making process regarding energy-generation facilities above 25 MW (that translates: industrial wind factories) in the hands of five unelected Albany bureaucrats. Other states are sure to follow Cuomo’s authoritarian lead. I urge people to be pro-active! Get protective laws on the books now – before corrupt officials steal your Constitutional rights to decide for yourselves.”

Think about your community 20, 40, 60+ years from now.

“There was a time when the environmental movement opposed noise pollution, fought industrial blight, and supported ‘little guys’ whose quality of life was threatened by ‘corporate greed,’” writes Martis. “But that was a long time ago, before wind energy.”

The author of Energy Freedom, Marita Noon serves as the executive director for Energy Makes America Great Inc., and the companion educational organization, the Citizens’ Alliance for Responsible Energy (CARE). She hosts a weekly radio program: America’s Voice for Energy - which expands on the content of her weekly column. Follow her @EnergyRabbit.

Earning my presidential vote: trade and job creation

I am finally approaching the halfway point in this quest, and pocketbook issues have considerable importance. This section is the first of two consecutive segments dealing with the economic end of government. Trade and job creation, to me, are the areas of government which most directly affect your income. (The next section, taxation, is the other end of the pocketbook equation.)

As I have noted throughout, you can work your way through the series by starting here and working forward as issues gain in weighting my decision.

In five bullet points or less, our next President should:

  • Revisit the Trans-Pacific Partnership (and other deals) to see if they can be salvaged as a good deal for the United States – which provides the majority of the GDP in each deal and should have the most favorable terms while maintaining our sovereignty. Otherwise, I believe in free trade that is fair, so we should work to isolate countries who don’t play by the rules.
  • Get government out of the way! According to the Competitive Enterprise Institute, regulations cost business $1.885 trillion in 2015. That has to stop.
  • Rather than knuckle under to the knuckleheads who think we should have a “living wage,” the federal minimum wage should be abolished entirely. States are free to continue the lunacy and watch their businesses suffer the consequences when minimum wages get too high for the market.
  • Be an advocate and cheerleader for the right-to-work movement.
  • Invest in necessary federal infrastructure, particularly highways – the “post roads” of the modern era. Not only does this benefit job creation but it would assist in getting goods from place to place more quickly.

So where do my contenders stand? Let’s find out how many of the nine points they will receive.

Castle: Opposed to TPP as “the worst of our free-trade agreements.” Should freely trade with all nations but formal agreements cost us sovereignty. (Facebook)

Hedges: Opposes Republican policy of giving away our jobs through free trade.

Supports “appropriate employment at a living wage available to all citizens who are able to work.”

“The importing of goods from and the offshoring of services to other nations are the primary causes of lost jobs and impoverished communities in America. We favor free trade only on a reciprocal basis among equals. We will impose balancing tariffs on all goods imported from countries whose wage scales, labor benefits, and environmental protections are not similar to our own. No nation which fails to protect the civil rights of its citizens may be accorded ‘most favored nation.’” (party platform)

As a party they also support right-to-work states and would index Congressional pay to the minimum wage.

Hoefling: “Politicians constantly talk about ‘jobs, jobs, jobs,’ even though they don’t have any jobs to offer that aren’t government jobs, or jobs that are subsidized by the taxpayers, and by debt shoved off on our grandchildren. As if we don’t already have more than enough of those kinds of jobs, right?

Here’s another thing: while working for a paycheck is certainly an honorable thing, it is not the American ideal. The ideal is for YOU to OWN your own piece of this country.

My goal, should I become the governor, is not to offer jobs to my fellow Iowans, or to use your money to bribe some company to provide you with a job. My goal is to secure your rights, and to then create an economic environment of FREEDOM, low taxes, reasonable, minimal regulation, and OWNERSHIP, an environment that will quite naturally lead to productivity and prosperity for all.

And, of course, the bonus is, companies will line up to do business in a state like that. You know it’s true.

‘Jobs, jobs, jobs’?

NO!

OWN, OWN, OWN!” (as Iowa gubernatorial candidate, 2014)

Johnson: Reduce the administrative burden. Level the playing field. Incentivize job growth.

As governors, both Gary Johnson and Bill Weld supported policies that incentivized job growth. In 2012, Gov. Johnson was praised as having the best “job creation” record of all presidential candidates. And Weld transformed Massachusetts from having the highest to the lowest unemployment rate of any industrialized state in less than 8 years.

Yet, Johnson has said that, “As Governor, I didn’t create a single job.” His point, of course, being that government doesn’t “create” jobs. Entrepreneurs, businesses, and economic prosperity are the building blocks for job growth.

Governors Johnson and Weld believe that we must allow a regulatory and tax environment that incentivizes fairness. Not one that picks winners and losers. The purpose of government regulation is to protect citizens from bad actors and the harm they might do to health, safety, and property. But regulation should not be used to manipulate the economy, to manage private lives and businesses, or to place unnecessary burdens on those who make our economy work.

Today, the reason so much corruption and power thrive in Washington, D.C., is that powerful corporate interests actually benefit from over-regulation. After all, they have the resources to comply with onerous laws. But for the average American, entrepreneur, or small businessperson, they don’t have teams of high-priced attorneys to help them navigate the bureaucracy.

We simply need to apply common sense to regulatory policy. Let’s get rid of the unnecessary laws and taxes that siphon the resources businesses use to create the jobs we need.

Governors Gary Johnson and Bill Weld helped create the conditions for job growth in their states. In the White House, they will create the conditions for massive job growth across the entire country. (campaign website)

McMullin: American businesses export more than $2.2 trillion per year of goods and services. The demand for American exports supported 11.5 million jobs, an increase of more than 50 percent over the past 20 years. On average, these jobs pay 18 percent more than jobs that are unrelated to exports. For all these reasons, Evan believes that trade is an engine of prosperity and that well-designed trade agreements can help our economy grow even more.

At the same time, we can do more to help American workers adjust and thrive in the 21st century. Since 2000, the U.S. economy has lost 5 million manufacturing jobs, although more than 12 million Americans still work at factories. The main driver of this trend is advanced technology, especially advances in robotics and computing. Today, U.S. automakers produce just as many cars as they did 20 years ago, yet the auto industry employs 300,000 fewer workers, a reduction of almost 25 percent.

Therefore, Evan believes that one of the most important ways to help American workers is to make education more affordable while supporting the growth of technical schools, online education, and work-based training programs. It is essential to support these alternatives to the typical full-time four-year degree program, which may not be a good fit for older students who need to work and support their families while studying. While U.S. factories have cut millions of jobs for those with a high school education or less, hiring of college graduates remains stable, while hiring of those with graduate degrees continues to demonstrate strong growth.

Around the globe—even in China—manufacturing employment is shrinking rapidly as factories rely more and more on advanced technology. Thus, using tariffs to raise the cost of Chinese imports won’t bring those jobs back to the United States. In fact, it will kill American jobs, because China and others will block U.S. exports, which now support more than 11 million jobs.

In addition, raising the cost of imports will force hard-pressed American families to pay hundreds or thousands of dollars more each year for basic necessities, from clothing to pots and pans and diapers.

Evan supports the Trans-Pacific Partnership (TPP), a trade agreement recently signed by 12 countries, including Japan, Australia, and Vietnam. The TPP will eliminate tariffs for all the countries that sign, but it will not go into effect until ratified by Congress, which must vote ‘yes’ or ‘no’ without making any changes to the agreement.

One of the biggest advantages of the TPP is that reducing tariffs to zero favors American companies. Right now, America has low tariffs, not far above zero. In contrast, other countries’ tariffs will plunge when the TPP goes into effect, opening up their markets to U.S. exports. TPP is still a good deal for those countries, because it gives them better access to the biggest market in the world (ours) and the third biggest (Japan).

TPP also helps create a level playing field between U.S. workers and their counterparts overseas. If foreign companies lower their costs by mistreating workers and polluting the environment, then its puts American companies at an unfair disadvantage. However, TPP has the strongest protections for labor and the environment of any major trade deal.

Finally, TPP is important for national security reasons. Our allies in Asia are watching to see whether the U.S. still has the ability to set the rules of the road, or whether their security depends on submitting to China. That is why the secretary of defense has said, “TPP is as important to me as another aircraft carrier.” If the U.S. abandons TPP, China is likely to intensify its campaign of intimidation in the South China Sea. Thus, support for TPP is a win-win proposition; it enhances our security and reinforces the growth of job-creating American export industries.

Americans are ready to work hard to provide for their families, but fewer and fewer are capable of finding the good jobs necessary to support a middle-class standard of living and help them to pursue their dreams. If we accept the slow growth of the Obama years this won’t change. Only if the economy begins to grow faster—at a rate of more than 3 percent year instead of less than 2—will good jobs become more widely available.

Right now, there are three major roadblocks standing in the way of a stronger economy: a tax code that rewards special interests while hurting small businesses, excessive regulations that cost businesses almost $2 trillion per year, and runaway entitlement spending that multiplies the national debt.

Evan McMullin will dismantle these roadblocks. (Editor’s note: see my next part, taxation, for point 1).

Federal regulations play an essential role in making sure that Americans have clean air, clean water, and safe food. Yet the blizzard of intrusive regulations issued by the Obama administration have gone far beyond what is necessary to protect our health and the natural environment. Instead, these regulations serve as an invisible tax that raises the cost of doing business and prevents firms from creating jobs. As president, Evan McMullin would direct federal agencies to identify a clear problem that needs to be fixed before resorting to further regulation. If an agency believes regulation is necessary, it would still have to prove that the benefits of a proposed regulation are greater than its costs. The same test would also be applied to existing regulations, which would be lifted if they were not achieving their goals.

If the United States can’t get its national debt under control, the government will eventually have to impose harsh taxes or pursue other policies that would drive the economy into a deep recession, destroying millions of jobs. The number one cause of runaway debt—now more than $19 trillion—is the cost of entitlements. Our country needs Social Security and Medicare to ensure the health of senior citizens and prevent them from falling into poverty. We also need Medicaid to provide health care to the needy. Yet these programs are so inefficient, wasteful, and susceptible to fraud that their costs are out of control. The result is that the government must borrow vast sums to keep the programs going. The Obama administration has already added $9 trillion to the debt, almost as much as every previous administration combined.

With a smarter tax code, streamlined regulations, and entitlement reform, the U.S. economy can begin to grow again at the rates it did in the 1980s and 1990s.

Evan McMullin believes that America should be the best place in the world for innovation, entrepreneurship and opportunity. We must reform a system that too often benefits the politically connected and the corporate elite, while leaving too many Americans without good jobs. By running for president, Evan McMullin is giving voters the opportunity to get the economy moving again instead of doubling down on the status quo. (campaign website)

**********

I wish Darrell Castle had been more specific and forthcoming on his economic policy. I’m sort of stuck here – on the one hand, the fealty to the Constitution he advocates would mean he would properly address most of my issues, but there are always the provisos and conditions to watch out for. I consider this a wasted opportunity for him. 3 points.

Jim Hedges has somewhat of a right idea on free trade, but the rub comes in dictating what policies other nations may have – particularly when we are so overregulated. Moreover, his stance on jobs at a “living wage” is troubling, and suggests he may not be as strongly in favor of the right-to-work platform plank. I can only give him 1.5 points.

I suspect Tom Hoefling is speaking of entrepreneurship, which is indeed sorely lacking in this country. Even better, it is a philosophy that is scalable to a national level, although the details could really be fleshed out more. He has the same problem as Castle insofar as the specifics aren’t being put out there and easily available. I give him more credit since he addressed the more important aspect of job creation. 4 points.

Gary Johnson gets it insofar as the philosophy goes, and he makes an extremely salient point regarding how the regulatory climate stifles competition. Big corporations become big donors, and then they move into the realm of lobbying for regulations designed to keep small players from gaining market share. But the question is how much will he do to promote “fairness” vs. to promote “opportunity.” There is a subtle but important difference, because fairness implies equality of outcome and that isn’t the way a free market works. Maybe I’m being picky with the term, but generally these campaign issue statements are thought through to make a certain point. 5.5 points.

Evan McMullin is much more sold on TPP than I am, particularly because China is not a party to it. One has to ask what we are giving up if other nations are suddenly going to reduce their tariffs to our level. I don’t think not having access to economies in Chile, Brunei, and several other signatories will break us.

And there’s the idea of justifying regulations – well, any idiot will tell you that of course the government agency that writes and enforces regulations will say they are justified. This needs to be determined independently of the government because job one for a bureaucrat is preserving his job, not solving problems. It’s also telling to me that Evan really didn’t discuss these educational alternatives in workforce training in his general education segment. Here he seems to want more government involvement, not less.

Note that I moved the taxation part of job creation to the next installment, but left the part about entitlements in because he also makes those same points there. I’ll discuss that subject in due course. Anyhow, Evan doesn’t do that well in this category with his political-speak. 2.5 points.

As I noted above, it’s certain my next part is taxation.

Earning my presidential vote: energy

The author really didn’t plan it out that way, but I think it worked out well that my usual Tuesday morning column from Marita Noon preceded this particular post, since we share a very similar philosophy insofar as energy issues are concerned. In five bullet points or less, the next President should:

  • Dismantle to the fullest extent possible the Environmental Protection Agency, which was created in 1970. Governmental functions that predated the EPA can be reverted to their original department after a review of their current usefulness.
  • The same goes for the Department of Energy, which was a waste of same since President Carter created it.
  • Eliminate the federal subsidies and carveouts for so-called “green” energy. If wind, solar, and so forth are viable they should be able to stand in the market.
  • On a related note, dispatch with the Renewable Fuel Standard (ethanol mandate), CAFE standards (anti-market regulation), and (coal-industry killing) Clean Power Plan.
  • Finally, walk away from the Paris Climate Agreement. Make the (correct) statement that mankind has little impact on the climate.

This was one for which I could have made about fifteen bullet points. But let’s see what candidates have to say, bearing in mind this category is worth seven valuable points. If you want to see the first parts of this overall exercise before continuing on, feel free to begin here.

Castle: Does not believe in man-made climate change, believes it is a “hoax.”

“I’m for the United States becoming energy independent as quickly as possible, using all of the resources that we have. Coal miners would be very happy with me, I think.” We seem to worry more about our environment than that of the places we get energy from. (Facebook)

Hedges: “We advocate increased research on and development of non-fossil fuel resources, tax breaks for companies engaging in such, and subsidies for consumers wishing to change from fossil fuels to renewable domestic sources of energy.” (party platform)

“(P)ollution abatement projects must balance costs with benefits. We believe that climatic change is an existential threat to civilization, and we will co-operate with other nations in mitigating its effects.” (party platform)

Hoefling: Energy independence is a given if we will simply get government out of the way. We have vast resources, just waiting for us to rein in the radical environmentalists and the out-of-control judges who have empowered them. (Facebook conversation)

Johnson: Protect the Environment. Promote Competition. Incentivize Innovation.

We need to stand firm to protect our environment for our future generations, especially those designated areas of protection like our National Parks. Consistent with that responsibility, the proper role of government is to enforce reasonable environmental protections. Governor Johnson did that as Governor, and would do so as President.

Governor Johnson believes the Environmental Protection Agency, when focused on its true mission, plays an important role in keeping the environment and citizens safe.

Johnson does not, however, believe the government should be engaging in social and economic engineering for the purpose of creating winners and losers in what should be a robust free market. Preventing a polluter from harming our water or air is one thing. Having politicians in Washington, D.C., acting on behalf of high powered lobbyists, determine the future of clean energy innovation is another.

In a healthy economy that allows the market to function unimpeded, consumers, innovators, and personal choices will do more to bring about environmental protection and restoration than will government regulations driven by special interests. Too often, when Washington, D.C. gets involved, the winners are those with the political clout to write the rules of the game, and the losers are the people and businesses actually trying to innovate.

When it comes to global climate change, Johnson and Weld believe that the politicians in Washington, D.C. are having the wrong debate.

Is the climate changing? Probably so.

Is man contributing to that change? Probably so.

But the critical question is whether the politicians’ efforts to regulate, tax and manipulate the private sector are cost-effective – or effective at all. The debate should be about how we can protect our resources and environment for future generations. Governors Johnson and Weld strongly believe that the federal government should prevent future harm by focusing on regulations that protect us from real harm, rather than needlessly costing American jobs and freedom in order to pursue a political agenda. (campaign website)

McMullin: Affordable gas and electricity are important for every American family. From the cost of commuting to the price of groceries, energy expenses are built into every part of our economy. Energy companies have made remarkable advances that create jobs and benefit consumers, yet interference from Washington has prevented American families from reaping the benefits they should. Evan McMullin will roll back the heavy-handed regulations that are hurting consumers while ensuring that we protect the natural environment.

Over the past ten years, there has been a revolution in American energy production; transforming the U.S. into an energy superpower. We are now the world’s leading producer of oil, even ahead of Saudi Arabia. With more oil being produced, prices have come down at the pump. Natural gas prices have also fallen dramatically because of booming American production. Meanwhile, U.S. carbon dioxide emissions have fallen because natural gas burns more cleanly than other fuels.

Evan McMullin will make sure that there is a level playing field for all types of energy producers, so American families have lower electricity bills and pay less at the pump. Right now, renewable energy producers receive more than $13 billion per year in subsidies, while fossil fuel producers receive $3.5 billion. Evan would put an end to all of these subsidies, which benefit politically connected corporations rather than American consumers. Evan also opposes state-level renewable energy mandates, which force consumers to purchase expensive electricity from renewable sources, adding to the burden of families who are already dealing with a long-term increase in electricity prices.

Our natural environment is a divine gift and each of us has the responsibility to serve as its steward. There is an important role for the government to play in ensuring that our children and our children’s children have clean air to breathe, clean water to drink, and clean parks and forests to play in.

We should also be concerned about the direction of global temperatures, which have risen about 1 degree Celsius over the past 50 years. President Obama’s response to climate change has been to rely on expensive, heavy-handed regulations that put Americans out of work.

Evan McMullin believes that promoting innovation is the most promising way to deal with climate change without placing a heavy burden on the backs of American taxpayers and workers. The right way to promote innovation is to invest in basic research, not to provide loans and grants to politically connected corporations. Our environment will be best preserved when America’s leading minds are focused on the problem, not when government is dictating the answers.

The centerpiece of the Obama administration’s climate change policy is the Clean Power Plan, whose implementation has been blocked by the Supreme Court. The plan will force dozens of power plants to close and destroy tens of thousands of jobs. The annual cost of implementation will be more than $8 billion. The administration also signed the Paris Climate Agreement, whose implementation would lead to annual economic losses of $40 billion per year if its goals were accomplished via regulation.

Evan opposes the Clean Power Plan because he believes we can protect the environment without causing so much economic devastation. He would reject a regulatory approach to pursuing the goals of the Paris accord, focusing instead on innovation.

The natural gas boom in the United States has already shown how innovation can benefit both the environment and the economy. Since the beginning of the gas boom, carbon dioxide emissions in the United States have fallen back to the levels they were at in the mid-1990s. This happened not because of government planning or regulation, but because the private sector made technological breakthroughs that increased our access to cleaner natural gas.

Together, we have an opportunity to create jobs, save money for hard working families, and protect the environment. (campaign website)

**********

I’m relatively disappointed that Darrell Castle hasn’t seemed to pay a lot of attention to this issue, as it certainly is influenced with a proper reading of the Constitution. On the surface he does well, but not to the extent where he would get a high score. 3 points.

In listening to and reading about Jim Hedges, he noted there were places where the Prohibition Party was far more “progressive” in an attempt (misguided, in my opinion) to draw younger voters. This is one area where that philosophy certainly applies, and “more of the same” is not good for our nation when it comes to energy policy. No points.

I feel the same way about Tom Hoefling as I do Castle: a nice approach on a broad scale, but more specifics would be nice. 3 points.

Gary Johnson gets it, sort of. But the problem is that he is conceding key points of the argument to the other side by leaving open-ended the contention that government is essential to provide “reasonable” environmental protection. Given that, one could make the case that everything we have adopted over the 46 years since the EPA came into being is “reasonable” because some bureaucrat thought it so. I think the government should get out of the free market, too – but I have outlined a number of concrete steps on my bullet point list above. Where are his? 2.5 points.

Despite his misplaced “concern” about global temperatures, I actually believe Evan McMullin has the best overall approach and philosophy. No, it’s not perfect, but on balance I think he would certainly consider addressing much of what I would like to see done. In this category he shines compared to the competition. 5.5 points.

We will see if the candidates recover when it comes to the next category, social issues.

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