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Corporate Welfare Queen
Peter Kraus

Peter Kraus

Peter Kraus worked at Goldman Sachs for 3 months as head of strategy.  But, after the Bank of America takeover, his contract terms changed and he was able to take a $25M golden parachute… paid for, in part, by your tax dollars in the form of $25Bn in TARP funds given to BoA. Now he’s gone and bought a $37M NYC apartment.

I think we need a new term to describe these people.  One I’ve heard and like is Corporate Welfare Queen.  I can’t even afford a $3M NYC apartment.  Why should my tax dollars pay for this man, who probably has zero kids, to drive around in some stretch Cadillac up and down the streets of Manhattan, while he sits at home and collects a check in the mailbox paid for by my tax dollars!  He should be out there being a productive member of society instead of wrecking it with disastrous banking policies and rap music.  I manage to hold down a job, he should too.  It’s not my fault his bank merged and eliminated his job.  He should have thought of that when he decided to get an MBA.

Story here and here.

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We Break It, You Buy It: Public Schools

I have an incredible investment opportunity for you in the $800 Billion/year industry of compulsory education.  There’s an easy 4-step business plan:

1.  Tie Public School funding to performance and local economic conditions.
2.  Blame underperformance on Evil Government.
3.  ?????
4.  Profit, even if you’re a Non-Profit!

Step one gets the ball rolling.  We have to apply the free market standard of success and reward to the education system.  The better you do, the more money you get (just like with CEO pay).  If your school isn’t performing well, then you clearly don’t deserve the money you’re getting because you are inefficient.  So we’ll move money from the underperforming schools to the schools that perform well.  This is partially done though a regressive tax system that funds public schools at a level proportional to the property values.  Given that one of the key predictors of academic performance is socio-economic background, part of this job is already done for us.  

Step 2 provides an enemy to distract genuinely concerned people from fixing the actual problems.  If they fixed the problem in the public system, there would be no room for a private, for-profit solution.  Since we all know that no problem can be fixed without making a profit, we shouldn’t have to worry too much about this step.  Much of the work has already been done to associate the government with bureaucracy and bureaucracy with incompetence, largely thanks to installing anti-government people in government.  It’s really an inside-out kind of approach.  Once people believe that government has no answers (because it’s been crippled from the inside) we have the perfect opportunity to extract profit.  

The magic is really in Step 3:  Create a private company that takes public money to do the same thing as an existing public school, but for less money.  The difference between how much you charge and how much you spend is where the profit in Step 4 comes from!  By doing the same job as a public school, spending less, and pocketing the difference, we’re adding bonus free-market model lessons.

Income comes from tax revenues, but we save (and pocket) money by not having to be accountable to the public.  When this happens in government, it’s called corruption.  But when this happens in privatized industries, it’s called profit.  Which would you rather have?  Corruption or Profit?  People will choose profit (See Step 2).  

Part of sustaining Step 3 involves looking good on paper.  If we don’t show some good numbers, then we won’t get our monthly checks.  How do we do this with less money than a public school?  Simple:  We change the focus from trying to educate everyone to educating only the children who will produce high test scores!  What business would hire a slow worker when they could just as easily hire a faster worker?  It’s all about efficiency.  It’s inefficient to try to educate some children.  The beauty of this plan is that refusing to admit underperforming kids and concentrating them in the failing public schools further reinforces the impetus in Step 1, making our system all the more necessary!  

Finally, we come to Step 4: Profit.  Clearly, by taking the efficiencies gained in not educating all students, but only the ones that cost less to educate, we can achieve higher test scores using less money, and pocket the difference!  Ideally, we’d convince governments to let us have for-profit, even publicly-traded corporations, like New York City’s Edison Schools (NASDAQ: EDSN) formerly was.  

But even if the public isn’t quite ready to accept the idea of using compulsory education for private profit, you can still make money as a “non”-profit.  Look to the “non”-profit Celerity as an example.  In Los Angeles, they contract out their management (and really, isn’t that the most important, differentiating feature?) to a for-profit called Nova.  It just so happens that if you own both Nova and Celerity, you can charge yourself plenty in order to make a profit.  

 

You may be asking yourself, “I’d love to invest, but I’d like to see this in action.”  Fortunately, you can!  Take a look at New Orleans for example.  Before God sent Hurricane Katrina to punish the gays and poor people, there were 123 public schools in the city.  Afterward, profiteers were able, through state intervention, turn over most of them to subcontractors!  The top-performing students now go to publicly funded privately controlled schools, while the public schools are left with fewer resources and some even have student to teacher ratios of 40:1.  Guess which students are doing better? (See Step 1).  

You might ask: “What about the teachers and the teacher unions in New Orleans?”  Well, the clever state of New Orleans fired them all and forced them to re-apply for their jobs.  Plus, $40 Million in state money was moved from public to private schools and some public schools weren’t even reopened despite parents, teachers, and students all waiting to get started.  This means that there are wait-lists for students who want to go to public schools.  Finally, government working on behalf of business instead of poor people!

If you’re interested, send me a check and I’ll purchase shares of EDSN on your behalf.

This just in:  Due to EDSN shares plummeting to $0.14/share on news of only one profitable quarter and the SEC investigation into cooked books, Edison Schools is no longer publicly traded.  For investment opportunities, please contact Jeb Bush who, on behalf of the Florida Retirement Fund, provided money for a bailout to take Edison Schools private again.  Edison has since diversified into marketing test-taking supplies and summer school services.  

Ahhhh… is there anything more beautiful than using public money to enrich private industries?  Thomas Jefferson would be proud!

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Participate! – Tell Obama to break with Rendition and Liars about Iraq!

I have hope that a President Obama will bring change.  But he can only do this if he is enabled by a public outcry to do the right thing.  Persistent public pressure has always been the impetus that has brought about enduring, progressive change in this country.  I’m inviting you to join me in letting our President Elect know that we are concerned about the continuation of the reprehensible policies of Extraordinary Rendition, Domestic Wiretapping, and the corruption of the Intelligence community that enabled the administration to illegally LIE to the American Congress and Public in order to launch a war on Iraq.  Two of the people responsible for these failures are John Brennan and Jami Mescik and they’re on Obama’s Intelligence Transition team.

Whenever I’m concerned about something like this, I’m visiting change.gov to let President Elect Obama know.  I’m asking you to do the same.

Read this article about who is advising him on the Intelligence Transition team.

Visit Change.gov and let Obama know you are concerned about this.

Here is what I wrote:

Hello,

I wanted to take a couple of lines to share some concerns I have about my future President’s transition team in regards to National Intelligence.  I volunteered for the Obama campaign and talked my friends in to voting Obama in the hopes that he could bring about change in some key areas.  I’m hopeful that Obama is the kind of President who will be responsive to my concerns, which I know I share with thousands of other informed Obama supporters.

I am concerned about the inclusion of John Brennan and Jami Miscik in the Intelligence Transition Team.

John Brennan supports extraordinary rendition and the Bush domestic eavesdropping program.  We need to cut ties with these kinds of programs that have so tarnished our reputation as a moral leader in the world.

Jami Miscik is partially responsible for “The Whitepaper” that provided congress with Bush’s lies to get us to go to war in Iraq.  She is partially responsible for the  lies in the damaging speech that Colin Powell gave to the UN to convince the world that war was necessary and that Iraq was an imminent threat.

I trust that President Elect Obama does not share these views nor values and I hope that he would be very skeptical of the advice given by these people when it comes to how to reform and restore the Intelligence community.  I understand the value of dissenting views, but these sorts of destructive, unAmerican, and dishonest characters do not have a place in a quality American government.

Thank you for listening,
Jayson P. Vucovich

Uniquely American, Isn’t It?

“The test of our progress is not whether we add more to the abundance of those who have much. It is whether we provide enough to those who have too little.” -FDR

“If a free society cannot help the many who are poor, it cannot save the few who are rich.” – JFK

“You work three jobs? Uniquely American, isn’t it? I mean, that is fantastic that you’re doing that.” – George W. Bush, to a divorced mother of three

In 1991, an LA Times Poll found that only 23% of Americans believe the state has a responsibility to take care of the poor.  What country in Europe is closest to us in this regard?  Germany at 50%.  Every other European country was far more than twice as likely to disagree.  Every other country in Europe also has a far narrower gap between the rich and the poor.  We’re somewhere between The Philippines and Mexico (by Gini Index.)  The “richest nation in the world” has 15 million children live in poverty.

But there is ALWAYS money to fight a war against people who didn’t attack us or money to protect golden parachutes!  There’s a government guarantee for money in the bank, but as a nation, we are morally bankrupt when it comes to our priorities.  Uniquely American, Isn’t it?

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Pallin’ Around with Domestic Terrorists…

I hope it’s not telling that my first post ended up being one about Bill Ayers.  I’ve been waiting to write some deep treatise on what I believe, what my values are, and how that shapes my politics.  But that hasn’t happened (yet).  Instead, I was so struck by two things said in the first interview with Bill Ayers and Bernadine Dohrn after the election that I had to share them.

I think it is a very provocative juxtaposition to have this couple, much maligned by the GOP, speak for a message of bottom-up change and fearlessness.

First, Bernadine discusses the biggest change to come from the result of the election:

And it does represent two important things, at least. One of them, it seems to me, is a pretty decisive rejection of the politics of fear, whether it’s fear that there’s some secret cell of domestic terrorists from the ’60s hanging around or fear that our major primary approach to the world and to raising our children should be one of fear. Obviously, life is—includes tragedy and pain and suffering, and that will come along, but approaching the world as five percent of the world’s people now seems possible, adjusting how the United States thinks of itself in the world. That’s, to me, an enormous thing.

The other striking part of the interview, for me, comes just a moment before when Bill Ayers says:

The question is, as Bernadine is saying, how do we build the movement on the ground that demands peace, that demands justice? This is always the question. It’s happening—the question is being raised in a new context. So how do—you know, I often think, thinking historically, Lyndon Johnson wasn’t the civil rights movement, but he was an effective politician who passed civil rights legislation. FDR wasn’t a labor leader. Lincoln didn’t belong to an abolitionist party. They all responded to something going on on the ground. And in a lot of ways, we have to get beyond—progressive people have to get beyond the idea that we’re waiting for a savior. We’re not waiting for a savior. We need to transform ourselves, transform our movements, reach out to one another and build an irresistible social force for change.

We are the change we have been waiting for.  The campaign slogan was not, “Yes I can,” but rather, “Yes, WE can!”

Read, Watch, or Listen to the interview at Democracy Now!