Friday, October 21, 2011

MONTANA!
 

Brian Schweitzer

has a surplus in the state treasury. He has a branding iron that reads "Vetoed".  He has state workers driving hybrids. You do not get a Suburban if you are a state employee unless it is absolutely necessary. He has cut the fuel bill for state vehicles in half. Any services which are not essential are curtailed. The state has had budget problems and there is no money for foolishness.

If you want a new community center, statue, building of any kind you better find another source of funding because unless folks are bleeding from the eyes without it, you will get no state money. All the departments in the state gave up 3% of their funds.

He has taken a pay cut and has asked other employees to do the same. In short he is treating state money like it was a household budget. He seems to get along with most folks and is not hostile, but it is funny to see him brand bills the state cannot afford. Some members of the legislature are not happy with him but he has a SURPLUS in the state treasury. He is prudent. He is not one of the "do as I say, not as I do" folks. Good guy.

He also collaborates with other states when possible. He is a good example of what states can do when necessary. There may be hope.

The health care plan is 2,700 pages long. No one knows what is in it. Nancy Pelosi's district received a bunch of opt outs. It is more nonsense. When you look at the federal government and compare it to Montana it is disgusting. Charlie Rose had Ray Delio on last night who said that  a 3% spending cut along with a 3% tax increase gets rid of about half of the deficit in the next ten years. He also said that a serious conversation is impossible at the present time. By serious conversation he means "How do we fix this". In short he is looking for a discussion driven by reason, civility, goals and is solution oriented. It requires that we listen to the other point of view without  any purpose than to understand what is being said. It is not performance art. It requires discipline. Serious conversation requires suspending judgment until all information is gathered. It is not entertainment.

When people who disagree with each other have an actual discussion there begins to develop what is called an insight. It is the purpose of debate. 

Neither party wants to have that discussion. They want power without accountability. Don't we all? 


There is something in the American Culture that is uncomfortable when the facts contradict the argument. This may account for the lack math skills so evident is many of our political leaders as well as our automotive industry. Domestic manufacturers of autos refused to react to consumer demand until the Asian autos had eaten into the market in sufficient quantity to change the composition of the market. They refused to build fuel efficient autos until there was no choice. One heard such explanations as "You can't tell people what to like". Then what is the purpose of advertising? 

Edwards Deming developed what is called continuous quality improvement. It is a system for analyzing performance. Detroit refused. Japan embraced it. Now Detroit embraces it.

Much of the current economic crisis is cultural: America is loath to admit mistakes.

The nonsense on Wall Street in the form of demonstrations is not going to solve anything. It is more Tea Party. This is great political theatre but short on substance or solutions. How many of those folks understand accounting or finance? I suspect there are not many economists in the mix.

Most of our political and financial difficulties are really auditions for the role of Nero. Make noise but do not attempt to fix what is wrong. They are more concerned with appearances that facts.

There is no easy answer and current solutions all come down to the same thing: putting the problem off rather than facing it. Americans are willing to accept this and will suffer the consequences.

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