Two books on Thomas Jefferson

monticello.jpg
Thomas Jefferson’s Monticello

As a Southerner (not to mention as an American) I have long been curious about Thomas Jefferson. The excellent HBO series on John Adams (available from Netflix) greatly increased my interest in Jefferson, and I resolved to read a bit about Jefferson as soon as I could get my hands on the right books. I asked an old boss of mine (thanks, Charlie) who loves that period of history for some recommendations. Ken Ilgunas recommended the same books, and Ken even picked them up for me at the Duke University library. They are:

American Sphinx: The Character of Thomas Jefferson, Joseph J. Ellis, Knopf, 1997

Twilight at Monticello: The Final Years of Thomas Jefferson, Alan Pell Crawford, Random House, 2008

Though, to my surprise, I think I would have agreed more often with Adams than with Jefferson on the political issues of the day, still Jefferson shines through these biographies as an incredibly nice man, an idealist, a product of the Enlightenment, a Southerner’s Southerner, an American’s American.

In the epilogue of Twilight at Monticello, there is an unexpected section on the decline of Virginia, and, along with Virginia, the decline of the South. This decline started around the time of Jefferson’s death. Southerners brought it on themselves:

“By the late 1840s, Virginia’s decline had become a matter of public comment, though little was done to arrest it. Before the Revolution, the Richmond Enquirer reported, Virginia ‘contained more wealth and a larger population than any other State of this Confederacy.’ By 1852, the Old Dominion, ‘from being first in wealth and political power, ranked below New York, Pennsylvania, Massachusetts and Ohio.’ These states, except for Massachusetts, were ‘literally chequered over with railroads and canals.’ …

“Intellectual life was almost nonexistent. Virginians published few newspapers and few books. Almost all literary works came from the North. The well-to-do refused to be taxed to pay for the education of their poorer neighbors, and the great majority of young people, white and black, received no formal schooling. A result was the almost complete absence of an educated middle class. There were only land-rich, cash-poor gentleman planters at the top, a somewhat larger group of lawyers, doctors, and merchants just below them, and then poor whites and free blacks at the bottom, followed by great numbers of slaves. Costly in itself, the presence of slaves discouraged the immigration of white laborers, denying Virginia much needed skills and enterprise.

“With discussions of slavery prohibited [by an act of the Virginia legislature], and the mails opened to confiscate abolitionist literature sent from the North, the entire society came to operate under censorship. Slavery, under increasing attack from the North, was passionately defended.”

By the time, about 110 years later, when I started becoming aware of the world, and the South, I’d been born into, not much had changed.

American cable and broadband: A ripoff

screen-shot-2010-07-20-at-52333-pm.png
A screen shot from the web site of Orange SA, a French telecom company

Periodically I check broadband costs in France, just to see how badly we have fallen behind in the United States. In France, you can get a package that includes Internet service, television, and telephone for 34.90 euros — about $45 — no contract required. For this money, you get up to 20 megabits download speed on your Internet connection, up to 100 television channels, and unlimited domestic and international calling on your telephone. Why is this?

Most Americans know very little about other countries and are conditioned to think that the United States is ahead of the rest of the world in technology. Nothing could be farther from the truth. In addition, Americans preach the virtues of competition, but we don’t practice what we preach. In France, rates are lower and service is better because of intense competition. In the United States, the rules are set by a Congress that is in the pockets of the big Telecom companies (not to mention the banks). Though the FCC is just now finally getting around to developing a national broadband policy, for the last 10 years nothing has happened except that the telecom corporations cooperated with government to exploit consumers and make the telecoms rich.

If Americans were better informed, I have no doubt that they’d be pretty angry. For 10 years they’ve been kicked around by the cable companies and telecoms. Everyone complains, but few realize that it didn’t have to be that way. Next time you hear someone use the words “business friendly,” ask them if that doesn’t translate to “friendly to the ripping off of the American population.”

By some odd irony, as I was researching French telecom costs this afternoon, my cell phone rang. It was Verizon, wondering why I haven’t “upgraded” my telephone. They want to give me a cheap new phone to get me to sign a two-year contract. Ha! I’ve never had a contract with Verizon, either on my cell phone or on my Internet service. These contracts are a major way that American telecoms prevent people from taking advantage of what little competition there is. I steadfastly refuse to sign a contract. And besides, why would I want a cheap, flashy phone when my three-year-old Motorola M800 works just fine. My Motorola phone is a serious phone with a serious antenna (hear that, iPhone?) that retailed for about $700, though I bought mine cheap on eBay. There’s no way I’d trade that phone for a new piece-of-junk phone (even if my Motorola M800 does weigh 10 pounds.)

Clearly Verizon is making a push right now to try to lure people into renewing their contracts. I’ve had several pieces of junk mail about that, and today there was the sales call. As the sales person gave me her pitch, I could hear a chorus of people in the background also making pitches. If Verizon is making a big push to lock people into contracts, what does that tell us?

It tells us that Verizon is expecting some kind of competition in the next two years that threatens to cut into their profits. Verizon has a gross profit margin of 60.18 percent. That’s predatory, and that’s what happens when corporations control a “business friendly” Congress and write their own regulations.

Farm subsidies

food-subsidy-pyramid.jpg
Physicians Committee for Responsible Medicine

Did you know that the federal government provides billions of dollars in subsidies to millionaire and industrial growers for producting animal feed? And that fruit and vegetable farmers get only 1 percent of these subsidies? That’s one reason the Big Mac is so cheap — government subsidies pay part of its cost.

Ruralpolitans?

ruralpolitans-1.jpg
Wall Street Journal

I have often wondered why we weren’t seeing more signs of a dropout movement, or a back-to-the-land movement, during this economic downturn. Maybe it’s happening. The Wall Street Journal had a piece this week about migration to rural areas, calling these back-to-the-landers “ruralpolitans.” It’s a rational thing to do. And yes, having the Internet makes it easier and diminishes the feeling of isolation.

Some perspective on California's budget

california-revenues.gif

california-expenditures.jpg

Those who like to bash California have been tsk-tsk’ing at California’s budget problems, trying to blame California’s “public sector.” California’s budget shortfall, at present, is estimated to be about $22 billion.

For comparison, the bailout of one bank alone — Citicorp — means that American taxpayers have now given $60 billion in direct assistance to Citicorp, plus $340 billion in guarantees. That comes to $400 billion, to one private bank! So far, the United States government has made about $12.7 trillion in guarantees and other financial commitments to private interests — Wall Street.

Another bit of perspective: During the California “energy crisis” of 2000 to 2001, Enron and other private interests ripped off Californians for between $30 billion and $70 billion, depending upon where one gets the numbers. Enron, by the way, paid no federal income taxes in most years and even used gimmicks to get tax rebates.

The reason California has a budget problem is that its revenue has fallen off a cliff because of the economic catastrophe brought to us by Wall Street. Last month, sales tax revenue in California was down 51% compared with last year, and personal income taxes were down 44% compared with last year. Californians are not making much money, and they aren’t spending much money.

If you look at the pie chart for California’s revenue, it’s pretty obvious which sector of the economy is not paying its fair share. California could easily fix its budget problem by increasing corporate taxes.

All the noise about public spending and the public sector is propaganda, distortion, and distraction. It’s unregulated greed and a corrupt Congress that we need to focus on.

A number we've been looking for: 2.3%

Corporations and their propagandists are always complaining, with great shrillness, that the United States has one of the highest tax rates in the developed world (35%). To which advocates for tax fairness always reply: Nominal tax rates are one thing, but actual taxes paid, because of loopholes and shelters, is something else again. To figure out just how much in taxes big corporations (and rich people) pay is very, very difficult. It’s one of the things that they very, very much don’t want working people to know.

Here’s a number in the Washington Post story on Obama’s plan to put an end to offshore tax havens:

“The tax havens allow major U.S. corporations to pay taxes on only a fraction of their profits. According to 2004 numbers, the most recent the administration has on hand, U.S. multinational corporations paid an effective tax rate of 2.3 percent on $700 billion in profits.”

Tax rates

irs-tax-rates.jpg

There was quite an outburst at the prospect of raising taxes for incomes over $250,000 a year. That’s radical, many said. “We’re running out of rich people,” said Michele Bachmann. “How Obama Will Bleed the Rich Dry” is the headline on Michael Gerson’s column this morning in the Washington Post.

The key point of fact is this: the Obama budget raises the tax rate on income over $250,000 a year from 35 percent to 39.6 percent.

Historically, that’s hardly radical. The top rate was over 90 percent during the 1940s, 1950s, and 1960s, and 70 percent during the 1970s. We never ran out of rich people.

Historically, what’s radical was Reagan’s reducing the top tax rate to 28 percent in 1986. Though there were tax cuts on high incomes, wage earners actually paid higher taxes under Reagan. Part of this project of lower taxes for the rich and higher taxes for wage earners was to teach wage earners to hate government by convincing people that higher taxes always hurt the little guy. That is just not true.

Denmark

c-karlebol.jpg
Wikipedia

Those who say that the United States is on a course toward European-type socialist democracies could be right. Let’s take a look at Denmark…

In the past eight years I’ve made two business trips to Denmark and spent four weeks there. I helped install a Danish publishing system at the San Francisco Chronicle, so I worked closely with a Danish company, and lots of Danes, for several years. This publishing system, by the way, is the system that’s also used at the New York Times and the Washington Post. The Danes are fantastic engineers and smart, honest businesspeople.

Most of these factoids about the Danish economy come from the Wikipedia article on Denmark:

— Denmark has a free market economy.

— Denmark has a large welfare state.

— Denmark has one of the world’s highest levels of income equality.

— Danes are very productive, and Denmark’s GDP per capita is 15 to 20 percent higher than the United States.

— Denmark holds the world record for income tax rates.

— All college education in Denmark is free.

— 80% of employees belong to unions.

— Denmark spends about 1.3 percent of GDP on defense, compared with about 4 percent in the United States.

— The national health service is financed by an 8 percent tax. This is a local tax on income and property.

— According to Statistics Denmark, the unemployment rate in Denmark in January 2009 was 2.3 percent.

— In some surveys, Denmark is ranked the happiest place on earth.

— Denmark was ranked the least corrupt country in the world in the Corruption Perception Index.

— According to the World Economic Forum, Denmark has one of the most competitive economies in the world.

I realize that Denmark’s model probably would not scale up in a workable way for the United States. Still, in my opinion, we should be studying some of the European models and not let ourselves be scared by them. They work.

Carolina blue

statemapredbluer512.png

Though the North Carolina elections board won’t release the final count until later this month, the Associated Press has called it — North Carolina is now a blue state.

As though to prove that this is a real phenomenon, yesterday Delta Airlines announced that it plans to start nonstop service from Raleigh-Durham to Paris. Last week, US Airways announced that it’s planning to start nonstop service from Charlotte to Paris.

This is not really something new. It’s a return to the norm. Lyndon Johnson, it is reported, said, “We have just lost the South for a generation” after he signed the Civil Rights Act of 1964.

It feels good to be connected to the coasts again, and to the world.