Wednesday, January 30, 2013

La Leche Pamphlets Have No Place in Clinics and Hospitals


I took my son to a pediatrician appointment for an ear infection today.  While we waited for the doctor, I grabbed some pamphlets to try to entertain myself and my son.  One of them was from La Leche League.  This is an organization that ostensibly supports breastfeeding, but ends up supporting the philosophy "a woman's place is in the home."  Amazingly, many Madison progressives think La Leche stands for supporting women's rights.

It's unfortunate that an organization promoting any political agenda is able to get its materials into so many clinics and hospitals.  It would be like the National Organization for the Reform of Marijuana Laws (NORML) made pamphlet's about drug abuse for clinics.  I agree with reforming drug prohibition, but that political discussion shouldn't find its way into doctor's offices.

If you read La Leche's materials, you'll read about how breastfeeding is one of the most important things you can do for the health of a baby.  When you look at the scientific papers on the topic, you find there is some evidence that breast-feeding is linked to slight reductions in the probability of various health problems, but we do not yet know if that correlation is causal.

I'd love to know how to get La Leche materials out of clinics and hospitals.  Those materials feed a political agenda misrepresented as science to people who are at time in their lives when they need good medical advice. 

Tuesday, May 22, 2012

WI DoR - Friendly and Easy-to-Work-With?

A bill from the WI Department of Revenue (DoR) arrived yesterday for estimated employee withholding taxes for a company I own, which has never had employees.  I thought they must be confusing the tax ID for my wife's business or the ID for our domestic employees with my company's ID.  I steeled myself for a long wait to talk to some languid bureaucrat.  If it got too annoying, I could just have our accountant deal with it.

After a three minute wait on hold, a friendly and knowledgeable person was helping me.  He explained that it was because I failed to file a zero-dollar withholding report form.  There was no fee or hard feelings.  He showed me how to add this company to my account on the DoR's website, so I can report this online.

Governor Walker keeps saying Wisconsin must be cheap on taxes to bring jobs.  It's far more important, though, for Wisconsin to be easy.  The company for which they helped me resolve the tax issue just so happens to be hiring someone in the next six weeks.  Having a user-friendly DoR website and a supportive staff there makes me sanguine about the process.

Maybe Governor Walker is doing something right behind the scenes to have such helpful people answering the phones, but his public rhetoric borders on demonizing the state's employees.  We need to be inspiring to these people and look for ways to retain the really good people who help small businesses rather than looking for a way to cut their pay or benefits.

I'm not sure who's responsible for the quick service I received today, but I say thank you to the WI DoR.  User-friendliness, a positive attitude, and a Wisconsin work ethic are important things to have on the front lines of a government agency that directly deals with job creation.

Friday, April 20, 2012

Personal Finance Concerns Go Beyond Politics

NYT says Americans' wariness about their economic circumstances may allow Romney to convince them he could fix their problems.  Polling numbers apparently show many people not having their act together financially.
  • 67% - Worried about paying for their housing
  • 20% - Owe more on their house than it's worth
  • 40% - Will have trouble paying for their kids' eduction
  • 33% - High gasoline prices ($200/mo per car roughly on average) are causing problems
These are amazing statistics.  Are houses' valuation is based on what the market will bear, and apparently that means prices that people can't afford.  Most people bought or rented a house they can't afford?  That seems hard to believe.

The next most shocking statistic is about fuel prices.  If the average car is driven 1000 miles/mo and gets 20 miles/gallon, that's 50 gallons/mo.  At $4/gallon, that's $200/mo.  $200/mo can make or break someone's financial world?  If a family with two cars received $400 more per month, i.e. free gasoline, it would change their financial circumstances?  Maybe this refers to people who use their cars way more than average for business or a special circumstance.  I wish the NYT probed further.

I also wish they had probed why 40% of Americans have had to alter expectations for the type of college they can afford for their children.  What changed between their old expectations and today's?  The stock market has recovered from the crisis three years ago.  Contributions to a typical college fund made during the crisis have nearly doubled. 

I am not trying to make light of the suffering behind these numbers.  They point to a problem bigger than what all the branches of all levels of government combined could do.

Monday, April 16, 2012

Issue of Public Unions is Complicated for Madison

Last February I got a couple of anonymous comments asking why I didn't address the labor protests in Madison at that time.

The main reason is that the Madison vs the rest of the state conflict is not just ideological. Everyone in the state pays taxes, but Wisconsin spends and inordinate amount of that money here in Madison. So all of Madison gets an economic boost at the expense of the rest of the state. Madison is economically successful because of all the knowledgeable people from the university and because of the Wisconsin work ethic. All the government money spent here helps too. Although no one in my immediate family works for the government, many of our clients work for the government. The tide of government money indirectly lifts all boats in Madison. This is not fair to the rest of the state. It would be nice to see government offices spread around the state and linked using IT.

Then there is the issue of the merits of labor unions. I completely rejected Governor Walker's argument that weakening the unions would save money for the state to help balance the budget. The unions were already agreeing to the pay cuts, so it wasn't necessary to dismantle them. My main criticism of unions is that they stifle innovation. They discourage giving people wide authority over a cost center and ability to innovate even if involves hiring and firing people or giving large bonuses based on managers' personal judgment. I am hoping future politicians use the weakened state of unions to shake things up and give great pay for great results, not to nickle-and-dime money out of employees.

It's easy for people to claim critics of unions don't care about helping the poor. Unions can help the poor, but they can also encourage mediocrity. We need to find ways to help the needy without the negative side effects of unions.

Wednesday, April 11, 2012

Taxes and Jobs

I heard a piece on Marketplace this evening about small business owner's reaction to the "Buffet Rule" increasing taxes on families earning more than a million dollars per year.

The question is whether a tax change would affect hiring and other investment behavior.

Within reasonable tax rates, it's absurd to say tax rates affect hiring and investment. The only reason for business expenses is they earn money. People are taxed on what they earn after expesnes.

You could use the same logical error to say increasing taxes causes hiring and investment since the value of the write-offs increase with tax rate.

This is all absurd. Between state and federal taxes even people with modest earnings set aside a third of what they earn. It's legitimate to ask if we want to take any more. It's legitimate to ask if social services and a military larger that most other militaries combined are worth the cost. If every one, not just business owners, had to write checks for a third of their income people would reevaluate the size of government. But let's not pretend like the issue of taxes is about "jobs".

Wednesday, March 21, 2012

Fuel Prices Grab Inordinate Attention

I caught a great interview on Marketplace with President Obama today. Ryssdal asked good questions and followed up on the answers.

One thing that stood out is that we're still carrying on about fuel prices. I know this is just something politicians must talk about, but why?

President Obama mentioned someone who has to commute 50 miles per day being severely affected by fuel prices. Let's do the arithmetic.

50 miles/trip * 2 trips/day * 20 days/ month = 2000 miles/month. That twice the typical 1000 miles per month. This person puts almost 100,000 miles on the car in four years, causing it to depreciate faster than average.

If they get 25 miles/gallon, that's 2000 miles/month / 25 miles/gallon = 80 gallons per month. So if fuel prices go from $4/gallon to $2/gallon, that's $160/mo savings. That's nothing compared to the maintenance, insurance, and depreciation on a car being driven 2,000 miles/mo.

Critics will say, "yeah, but what about the poor and near poor? What about people living so close to the edge that the $160 really affects their life?" Poverty is a problem. People spending over an hour each way in a car every day is another problem. Trying to find a way to keep to squeeze $160 out of fuel cost is an unreasonable approach to these real problems. People need to find ways to earn more money, reduce their commute, and use an inexpensive car for long commutes (to minimize depreciation).

I suspect the reason we focus on fuel, is we sit and watch the meter tick off gallons with nothing else to do. The same people who unnerved by this completely ignore that a reasonably late-model car losses >$160/mo in depreciation. They also may being paying interest on the car and hardly think about that.

A politician can't be expected to be the one to do it, but someone needs to show people worried about fuel costs that fuel costs aren't that big of a problem.

An Illinois and Wisconsin Politicians

I wonder if the juxtaposition in this e-mailing I received is intentional.
It looks like a stereotype of an Illinois politician and a Wisconsin politician, from a Wisconsin point of view. The Wisconsin guy is down to earth and friendly. He saying, "This weather feels like June, hey." The Illinois politician is containing his laughter at Wisconsin naivety about crooked politics. It's unfortunate Barrett's picture didn't get the top location.