George Rebane
[This is the submitted version of my column that appears today 12 June 2010 in the printed and online (here) editions of The Union.]
Don’t you love it when everybody wins? You know, when both sides claim victory or look at the same data, and come to exactly the opposite conclusions, only one of which could ever be true. My response has usually been, ‘well good for the both of you’, and let a later reality sort it all out. So after years in a social and economic tailspin, California once more finds its future prognosticated by clear-eyed politicians and pundits, equally persuaded, as they point to every direction on the compass.
Art Laffer of Laffer Curve fame reminds us that taxes on everything from income, dividends, capital gains, toe nail polish, you name it, all are going up big time on 1 January 2011. And they will keep going up. So most American companies will be taking every cent of profits they can this year. This will make the economy’s numbers look good in 2010, even though taxes and debt promise that future real growth will remain anemic. With the election coming up in November, it’s almost as if someone planned it that way.
Laffer says we will all pay for it next year as the inevitable lower earnings get projected and reported. As a result, the markets will tank and the country sinks back into a double-dip recession.
Cari Tuna in the Wall Street Journal gets specific about California, and points out that with 12.6% unemployment (US 9.9%) we are a big drag on the national recovery. Our $19B budget shortfall for 2011 is the wrong kind of light at the end of the Golden State’s DIY tunnel project. Meanwhile, California’s right continues to see hope with targeted tax cuts, especially for new businesses. But they have only two chances of turning Sacramento – slim and none.
Those on the left place their bets on the good folks in Ohio to continue funding government ‘investments’ in California to ‘develop’ a passel of new green jobs and subsidized green industries. And then when these economic mavens also end ‘tax breaks’ for companies sending jobs elsewhere, even more money will flow into our state’s coffers. We know this will work because those greedy capitalists will have no alternative but to stay here, pay more taxes, and hire California workers at proper wage levels. There is no end to these kinds of winning strategies, one just has to look.
And to put a real polish on that future, UCLA economist Jerry Nickelsburg tells us that California has already gone through its big “structural adjustment” in construction and manufacturing, and therefore is set to soar in 2011. Things are looking up!
But here come those pesky conservatives again with their charts and graphs showing how our economy has rocketed when tax cuts kicked in, and tanked with higher taxes. The left points out that these guys have it all wrong, because they’ve got their charts turned upside down. It’s always been tax hikes that have kicked the economy into high gear, and they’re determined to prove it again next year. Just tell them how high you want that old GDP to climb, and they’ll raise taxes accordingly. How many million more jobs do we need? Let them know, and with more taxes and debt, they’ll make it so. Either way we can’t lose, right?
If all that high level economics leaves our heads spinning, then we can listen to the financial advisers who tell us to convert our regular retirement accounts into Roth-IRAs before next January. They say that is a “no brainer”. Then again …
In the meantime more than a few folks hereabouts with a keen eye toward the future are buying short lengths of large diameter PVC pipe with end caps.
George Rebane is a retired systems scientist and entrepreneur in Nevada County who regularly expands these and other themes on KVMR and Rebane’s Ruminations (www.georgerebane.com).
‘You Are Not a Gadget’
George Rebane
The essay itself is a rambling yet engaging collection of historical observations, experiences recounted, and musings philosophical of the current pre-Singularity years as Man collides and couples with machine. I found it interesting because of my own work in the same vineyards, but in many places I saw different things happening for different reasons than did Lanier.
In the book he shows us the impact on society – ‘technical and cultural problems’ – that “can grow out of poorly considered digital design", although I didn’t find cited examples compelling. He does seem to be concerned about a genre of computer programs (machine intelligence) and the new celebration of ‘mob wisdom’ that yields various algorithmic cook-ups of what groups of people purport to say and do. These he sees as beginning to trump “over the intelligence and judgment of individuals” in advanced societies.
Finally, he argues for the advent of a “humanistic technology” that somehow will maintain the primacy of human individualism and creativity in a world facing the onslaught of ever more intelligent machines. Admiral Hyman Rickover, father of the nuclear navy, introduced the notion of humanistic technology in a 1964 speech at Georgetown University. He was worried that technology might be developed for its own sake instead of for solving specific human problems. And high thinking people have been so worried ever since.
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