The GOP Lite: an army of none

Many are demanding that the Republican Party, smarting from two disastrous elections in a row, move to the “center” in order to become more likable to the voters. This idea is what makes people hate politics, and will result in larger, more permanent defeats.

The truth is, most people don’t care about politics or government. They don’t study it, and would prefer politicians handle public issues the way your doctor deals with disease: just fix it, preferably without pain, and without the tedious business of explanation.

On the rare occasions when politics does matter to regular folks, they want to believe that – like doctors, or engineers, or mechanics -- politicians are serious people who have devoted thought and study to difficult issues. And that’s why split-the-difference centrism is a recipe for destruction.

Would you respect a doctor who used to prescribe amoxicillin, but stopped because he was afraid patients would disapprove? What voter will ever respect a GOP that changed its position, not because it was wrong, but it in order to pickpocket a few votes?

If a thing is right, it does not lose its virtue by a loss of popularity. Neither does general acceptance transform evil into good.

There are things that can and should be negotiated -- not every choice is a matter of principle. How much money should be set aside to pay for wildfire response in 2009? Should commercial truck drivers be required to undergo hazmat training? What is the legal definition of “income”?

But principles are not a matter of negotiation. What will we say in the next election? Will we mimic John Kerry, and say we were against abortion before we were for it? That we were for limited government and freedom before we were against it?

People would leave the GOP in droves. Those independents in the middle are there because they don't have any strong beliefs. They will not show up to phone bank, or drop literature, or canvas door-to-door.

A Gallup poll conducted November 13-16 found that 87% of Republicans want the GOP to stay the way it is, or become even more conservative. Of the self-described independent voters, 57% agree -- the GOP should be at least as conservative as it is now.

Of the Democrats, 56% think the GOP should become more liberal -- and, it will no doubt soon be reported, most mice believe that cats should become vegans.

Let us not make too much of the recent swings of the electoral pendulum. There is no such thing as an undefeated political party.

The Liberal Lite GOP – less filling, great taste? – would become an army of none.

Throwing in your lot with those who follow

Two CEOs of troubled major corporations were asked during the past week if they would work for $1 a year. Their different answers show very different views of the world, and their places in it.

Edward Liddy, who was tapped to run insurance giant AIG in September after the company had already been run into the ground, will receive a salary of $1 a year this year and next. More than 50 other top executives will have their pay limited as well.

GM chief Richard Wagoner, who has had eight years to finish running his company into the ground, was asked during Congressional hearings if he would work for a dollar a year. He indicated he was satisfied with his current compensation, which includes salary of $2.2 million, according to SEC filings.

Which man is showing leadership? Both of them are fabulously wealthy -- something all of us would like to be. Both have made mistakes in their careers. But the dollar-a-year man is leading in a way that tells those who follow that he's thrown in his lot with them

The term “dollar-a-year man” originated with executives who answered America’s call during World War Two. They left their private companies and went to work for the government, helping to run the war effort, for the token pay of a buck per year. It was revived famously by Lee Iacocca during Chrysler’s dance with bankruptcy in 1979-1982.

The world has changed again, like it did after 9-11. This catastrophe lacks the dramatic video of explosions, burning buildings and people falling from the sky. But it’s as dangerous, and as important, and as expensive.

Ohio Gov. Jim Rhodes famously and correctly said that profit is not a dirty word. Let’s add “selfless,” “noble” and “duty” to the list of acceptable words. At the end of the day, America is made up of people who are willing to answer the call – and that’s why we will survive these days, and one day again, thrive.

Better cars, lowers costs, and a dollar-a-year -- saving Detroit again

Economic drama is not new to Detroit. During the late 1970s, Chrysler Corp. was bleeding cash and dancing with bankruptcy. What happened then shows part of what’s wrong with Detroit now, and may point the way out of current swamp.

Lee Iacocca was a career car guy who spent 28 years with Ford. Far from a perfect man, he was fired by Ford.

Chrysler picked him up in late 1978 as president and chief operating officer. Iacocca agreed to work for $1 a year, and vowed to take no greater salary until Chrysler returned to profitability.

Iacocca managed to win $2 billion in concessions from dealers, creditors and labor. Those concessions, and the humility of that $1 a year salary, helped him win passage of the Chrysler Corp. Loan Guarantee Act of 1980 -- $1.5 billion in federal loan guarantees.

He also started producing cars that America actually wanted to buy – what an idea! He famously ordered engineers to lop off the top of a K-car and create a convertible – a market niche abandoned by American manufacturers nearly a decade earlier.

Iacocca was a shameless self-promoter, and his critics sniff that he was nothing but a salesman. But his work looks an awful lot like leadership, even with the warts.

Chrysler lost $1.7 billion in 1980, but by 1983 the company turned things around and posted a profit of $500 million – and, best of all, paid the loans back years ahead of schedule. His template -- sacrificing his own salary, revamping his product line, cutting his overhead -- is what the Detroit Three need today.

I’ve opposed the auto bailout because the markets, and bankruptcy restructuring will best help the D-3 make the rapid transitions that are necessary. The auto companies continue to carry huge legacy costs from oversized dealer networks, labor-related costs and excess production capacity. The necessary concessions from dealers, labor and retirees are all contractual, and won't happen without a judge.

And CEOs are still taking salaries that would make a drug lord blush, all the while posting huge losses. No plan for recovery is in place – the message seems to be, give us money, we’ll let you know if we need more.

But it seems that the new Congress, controlled by a heavy majority of Democrats, will pass some sort of auto bailout after it takes office in January. If the government just has to intervene, it would do well to remember history – and please, try to get a plan out of the D-3, and find us a dollar-a-year-man.

First, practicing to deceive

A high-ranking Strickland Administration official tried to cover up his boss’s improper snooping on Joe the Plumber. The boss, ODJFS Director Helen Jones-Kelley, has received her slap on the wrist – a 30-day suspension – for her abuse of government power. Her acolyte has received neither sanction nor attention for his misdeed.

His name is Doug Thompson, and he is Deputy Director of Child Support. He worked for Jones-Kelley in Montgomery County. His action is buried inside the Inspector General’s report.

Joe the Plumber had his fateful meeting with then-Sen. Barack Obama on October 12. Four days later, Jones-Kelley, Assistant Director Fred Williams, and Thompson were discussing Joe the Plumber. It is unclear why three powerful state officials were discussing a private citizen – child support enforcement and welfare benefits are handled at the local county level, not at the State level, and certainly not by the head of a mammoth state agency.

Onward. On October 24, the news media broke the story of Jones-Kelley’s check for dirt on Joe the Plumber. The Governor did not request an investigation -- the Inspector General’s investigation was undertaken by his own initiative.

The actual check was performed by an administrative assistant, who had no idea who she was looking up. As things began heating up, Thompson came to her and ordered her to send a cover-up email. From the report:

“She said Thompson dictated to her the exact wording of an email that she was to send and “literally demanded” that she send the email to Rick Copley, Chief Privacy Officer, explaining that this SETS inquiry performed for Brown was for child support purposes. We believe that this email orchestrated by Thompson was an attempt to deceive as there was no agency function or purpose for accessing Wurzelbacher’s records.” (p. 7).

Who was Thompson attempting to deceive? The Inspector General, the media, you and me. It’s called a coverup, and it’s morally in the same class as the original act.

More importantly, why was he lying? Why order a junior subordinate to send the deceptive e-mail? No one would expect her to know the reasons she was told to perform the inquiry. If the original inquiry was justified, why not explain it over his own signature?

The answer is obvious: he knew it was political, unjustified and contrary to law. He wanted to be as far away from it as he could, and he wanted to keep his boss away from it, too.

Governor, he tried to lie to you. You will not be able to successfully govern if your subordinates believe deception is OK.

The IG report is available at at: http://watchdog.ohio.gov/investigations/2008299.pdf

If it's fixed, break it -- OVI prosecutions in peril, or, Stupid Government Tricks, Part 2

The state wants police agencies to scrap their existing Datamaster alcohol testing machines in favor of a new machine that’s easier to use and portable – and not as accurate or reliable. The new machine is the subject of lawsuits in other states, and DUI defense lawyers here are revving their word processors.

The new machine, the Intoxilyzer 8000, can give different readings from repeated tests on the same drunk. The old standard Datamaster is rarely challenged in court, because the technology is well-known, and generally accepted. If there’s a Datamaster test, lawyers tell their clients to plead guilty

Al Staubus, Ph.D., is an expert in how the body processes alcohol. He testifies for both the defense and the State and is highly regarded by the courts and the scientific community. He told me that the new machine has several deficiencies, including variation in test results depending on how hard the drunk blows.

The Datamaster won’t analyze a breath sample that doesn’t produce enough air in a limited amount of time. The new machine doesn’t use that fail-safe – meaning the deep-lung air doesn’t necessarily get to the machine.

And, the manufacturer of the new machine won’t let defense lawyers review the computer source code, so defense lawyers claim they can’t tell if the machine produces scientifically reliable results. That’s hard to argue against – no prosecutor wants to convict a person who may be innocent.

Ohio approved $6.4 million Tuesday to purchase 700 of these curiosities, and plans to use them for the Highway Patrol, and give them to local police agencies. The Health and Public Safety departments are telling us not to worry, everything’s fine. Besides, it’s not local money, it’s a federal grant.

Can anyone explain to me why bad purchasing decisions are instantly rendered unobjectionable because it’s federal money that’s being wasted?

But don’t take my word for it. John Saia, a skilled OVI defense lawyer, told the Plain Dealer “These are much easier machines to defend against, because they’re flawed.”

I know John Saia. He knows what he’s talking about. Ohio, you’ve been warned.

Anbody want to buy a bank for free?

The federal government decided Cleveland-based National City Bank was too fragile to warrant federal bailout money, so it gave National City’s share to Pittsburgh-based PNC, which used the money to buy National City. Tempers are flaring in Congress over the deal, as they will again if the government continues to pick the market’s winners and losers.

National City was the only one of the nation’s 25 largest banks that did not get bailout money. It has $100 billion in deposits and $150 billion in assets, according to this morning’s Cleveland Plain Dealer. PNC is paying $5.6 billion, and getting a $5 billion tax break to finance it – plus NCB’s share of the bailout cash. (The tax break is result of a Sept. 30 rule change by the Treasury.)

Anybody want to buy a bank for free?

The government is supposed to be like a referee -- but in the financial system bailout, the referees are throwing the game to the home team.

The truly crazy thing is, market forces would have resulted in someone buying National City without the federal government intervening. Talk of a buyout had been reported in the press since at least last spring, well before this fall’s financial storm.

On October 10 – after the financial meltdown, and after the bailout package was approved, but before PNC’s federal genie granted it three wishes -- the Plain Dealer reported that no fewer than five banks might be interested in purchasing National City.

And it’s not just National City. Four years ago, the then-chairman of National City predicted that half the nation’s largest 20 banks would be sold. We’ve been heading toward a period of consolidation in several industries, including banking. The financial meltdown just got us here more quickly.

America got rich because people believed in their own futures, and decided what risks to take, and not to take. Some individuals chose poorly – but an informed market with predictable rules is still the best way to allocate resources. Allowing Treasury employees and elected members of Congress to pick winners and losers is a sure path to unintended, and ugly, consequences.

There's a reason I don't own GM stock. Why does Congress get to force me to buy it now?

You get more of what you subsidize, and less of what you tax. Congress’s urgent task in the current bailout mania is to avoid producing more of what it doesn’t want – such as short-sighted management and products no one wants to buy.

General Motors and its ailing cousins lumbered onto the floor of Congress last week, begging for $50 billion – money it could not convince us to willingly spend for its unlovely products, and money which it now proposes to take from us by the force of legislation.

We don’t even get a free SUV in the bargain.

When some lawmakers balked at the price tag – call it the beginnings of a return by Republicans to fiscal sanity – the auto industry dug its collective toe into the carpet yesterday and mumbled that maybe $25 billion would get the job done.

Here’s a question: Why should we bestow the public treasure on the same brain trust that failed to foresee that growing global demand for oil would drive up gasoline prices, and drive down demand for its SUV-heavy fleet? (According to Edmunds Auto Observer, SUVs make up about half of GM’s sales, versus about a third for Toyota.)

The automotive industry may be due for another round of consolidation. It’s true that our national security requires domestic manufacturing capacity – but that doesn’t translate into three automakers, in their current configuration.

And here’s another question: Why should we, the taxpayers, want to buy an equity stake in these poorly performing companies? Isn’t an equity stake what GM, Ford, & Chrysler LLC offer for sale every day on the New York Stock Exchange – a stake that fewer and fewer people want to buy? What do those people know that Sen. Henry Reid doesn’t know?

Sen. Reid and Rep. Nancy Pelosi seem to be making the argument that the auto bailout makes sense because of the jobs of those folks who work in the industry. But if relief for troubled workers in a recession is the goal, this bailout is an awfully inefficient way to get there.

According to the U.S. Bureau of Labor Statistics, 1,282,000 people are employed in the manufacture of “motor vehicles and motor vehicle equipment” – a.k.a. the automotive industry. That’s not just the Big Three, but all their suppliers as well.

The $50 billion bailout would give every one of those people $39,000 each. (You can do the math: $50,000,000 divided by 1,282,000.) If it’s half, the per-person cost is $18,500.

If the worry is the workers, just give them the money and bypass the CEOs. Better yet: let the consolidation begin. It's time, and America will ultimately be stronger.

Helen Jones-Kelley: How to make sure she's the only one in three easy steps

Gov. Strickland said he has not looked to see whether there’s any evidence to suggest other political appointees have used government resources for political fundraising, like his director of Jobs & Family Services, Helen Jones-Kelley did.

Governor, you will never find what you don’t look for. Don’t wait to see if the media turn up any more examples. Here’s how you can do it, quickly and cheaply.

First: It is a simple matter to identify the people in the Obama and McCain finance operations. Shucks, the Obama folks are probably in your contact manager (or rolodex, if you still use one of those).

Email is routed through servers. Second step: Perform a search on those servers for those fundraisers’ names, and a few keywords that shouldn’t normally show up in government emails, like “fundraiser.” You may have to look back on the backup tapes, depending on how often mailboxes are purged – but you really only have to go back to January.

This search will produce a limited number of emails that warrant further review. which is the third step. The search can be done very quickly by your data technicians, and the only cost will be staff time.

And then, you can either clean house or reassure Ohio that all is well.

And if you don't do it, you can be sure one of the newspapers will.

VETERAN'S DAY 2008

"The world will little note, nor long remember what we say here, but it can never forget what they did here."

-- Abraham Lincoln

Ted Strickland's Lonely Vigil: Waiting for All the Facts

Gov. Ted Strickland wants to wait for all the facts before he decides what to do about Helen-Jones Kelley, accused of abusing her position and her state computer to raise money for the Obama campaign and to investigate Republican posterboy Joe the Plumber.

Of course, Gov. Strickland didn't “wait for all the facts” on former Attorney General Marc Dann before he demanded his resignation. “All the facts” are still not in on Dann, who was an independently elected Constitutional officer.

But there’s no real doubt about what happened with Jones-Kelley. Gov. Strickland cites “technical” matters. What he’s talking about is routing information contained in the header of an email. It is possible to send out an email that looks genuine, but is not. But that’s not at issue here, because the content of Jones-Kelley’s emails shows they are real.

The emails are about a big-ticket Obama fundraiser in Dayton, Jones-Kelly’s home town. The emails went back and forth between the Obama campaign and Jones-Kelley at her state e-mail address. Remember, these emails were obtained by the Dispatch from the State, so they at least went to Jones-Kelley’s email account. If someone was spoofing her email, why didn’t she notice the emails flowing through her account?

Because they were hers, and they are genuine.

The emails included the names of 17 potential donors, according to the Columbus Dispatch. At least one of those donors wrote a check for $9,600. If someone was trying to set up Jones-Kelley, and the emails aren’t real, why would they put solid donor leads in the email?

They wouldn’t. Jones-Kelley mined her hometown contacts to help Obama – which is perfectly proper, except she used her government email account.

And there’s more: the Jones-Kelley emails promised she would make a $2,500 donation – and she did. Corroboration anyone? And she also offered to host a reception for Michelle Obama. That personal detail has the ring of truth.

We're not talking about a criminal case that requires proof beyond a reasonable doubt here. We're talking about whether there's enough evidence that would justify a governor firing an at-will employee who broke his own rules.

Gov. Strickland did not wait for "all the facts" on Marc Dann, and he was right to speak out. He should speak out -- and act -- in the case of his own appointee.

Gov. Strickland also told the press that he didn’t have any reason to look into whether anybody else did what his Cabinet officer did, and he had no intention to checking. But there’s a very simple, cost-effective way to make sure, so the governor can tell the people of this whether or not anybody else was campaigning with State resources.

In my next post, I’ll explain how.

Mortgaging our future for.... what?

General Motors is pleading with Congress for a bailout – that is, they want money from you and me, $50 billion worth. It’s time to call your lobbyist – he goes by the name “Congressman” – and say we’re out of cash, too.

Not-nimble General Motors is in trouble mainly because 1). It’s building too many gas guzzlers nobody will buy now; and 2). Its costs are out of line.

These problems are merely worsened, not caused, by the poor economy.

The economic meltdown is a recent phenomenon, but GM’s woes have been going on for years. Three years ago, billionaire investor Kirk Kerkorian told GM to slash its pay schedule, particularly at the executive levels, and sell off its Hummer brand, which makes trucks that go through gasoline “like nothing else.”

GM didn’t, and now finds the value of the brand so low that it may not be worth selling. (Don’t get me wrong – if you want to drive a Hummer, and can afford the gas, more power to you. It's just that GM's bad bets on a perpetual market demand do not a national crisis make.)

And GM costs need pruned. For example, American auto manufacturers have more dealerships than Japanese companies – dealerships that cost money in extra delivery charges, advertising and support. A year ago, the Detroit Free Press reported those extra dealerships cost American manufacturers $436 per car.

GM is big, but it’s just one of 17,000 companies that more or less make up “big business” – companies employing more than 500 people.

Small businesses create 75% of all new jobs, and more than half the workers in this country work for small businesses. If GM does seek bankruptcy protection – instead of a bailout -- it will open up new avenues for it to become more like a modern business, and allow it to restructure some of its costs.

At the end of the day, we cannot borrow our way to prosperity. This economic crisis is going to hurt, and America cannot soften the blow for every large corporation facing liquidity problems.

The automotive industry is different than the banking industry, where every business has to go for capital. The automotive industry is huge, but not systemic. And this is a good place to draw the line and say “no.”

She serves at his pleasure -- so is Govenor Strickland pleased with Helen Jones-Kelley?

Governor Ted Strickland faced his first ethical test yesterday, and failed.

Helen Jones-Kelley, who authorized the Nixonian examination of Joe the Plumber’s personal information in government files, was finally placed on paid administrative leave yesterday. She’s under investigation by the Inspector General for her role in using government databases, to presumably look for dirt on the Everyman icon who put President-Elect Obama on the spot.

But that’s not what got her a paid vacation.

It seems she was performing fundraising and organizing for the Obama campaign on her state computer.

The governor has the emails. He gave them to the press. There’s no doubt. Why didn’t he fire her?

A cabinet officer is a political appointee. (This one makes $30,000 more than the Attorney General of the State.) She has no job protection. There’s no union contract to worry about. She serves at the pleasure of the Governor, and can be fired at will. As in, “Helen, clean out your desk. This trooper will see you to the door.”

Paid administrative leave is appropriate where civil service rules or collective bargaining agreements make it difficult to predict whether a termination will stand appeal. Here, those reasons do not apply.

Mayors and Governors and Presidents fire political appointees just because they say something out of line, or disrespect someone, or just don't inspire confidence anymore. Certainly, using government office and equipment for partisan political fundraising is a reason to show someone to the door. Make a statement about your Administration – and send a message to the 5,000 or so political appointees out there. Believe me, Governor, they’re watching.

Gov. Strickland had a chance to make a loud statement about the integrity of his Administration – and he did.

Historical Perspective: A decision, not a mandate

The 2012 presidential campaign should not start today. It will begin soon enough.

Americans want their president to succeed. The greatness of our country is the peaceful transition of power, which is not commonplace in human history. Congratulations to President-elect Obama, and may God be with you.

But now, how to govern?

Yesterday’s election was less a vote for liberal policies than a vote for somebody other than George W. Bush. (Full disclosure: I did not vote for Mr. Obama.) Mr. Obama tacked toward the center during the campaign and avoided advocating truly left-wing ideas – the only real slip in message discipline was his comment to Joe the Plumber about spreading the wealth around. He would be wise to continue that course, because his margins yesterday were historically modest.

The last Democrat to achieve a popular vote margin in double digits was Lyndon Johnson in 1964. The only president to win office by slimmer margins than Mr. Obama was George W. Bush.

In historical terms, the country did not give Mr. Obama a mandate, and he would do well to govern from the pragmatic center. Ronald Reagan, in spite of his very conservative rhetoric and ideas, chose his battles carefully. He advocated dismantling of the Department of Education – but he did not seriously try to force Congress to do so. He picked a few, broadly popular ideas – tax reform, increased military muscle and deregulation of some industries – and spent his political capital there. He did not try to fight every battle of his ideological base.

The two tables below graphically illustrate the margins in popular vote and electoral college votes. The country remains closely divided. They do not want more George Bush – but they didn’t give Mr. Obama America’s credit card to go get whatever he wants.

The Only Poll That Matters

My office is on the third floor of county office building. The Board of Elections is the basement.

Every day for the past three weeks or so, I walk past the room where early ballots are being cast. With each passing day, the lines have gotten longer. Tonight, people were standing in line outside in the parking lot.

These are not ACORN bus transportees. The cars in the parking lot have Delaware County tags.

Some people, like George Will, think it’s just awful that people should be allowed to vote early. Voting on Election Day is a tradition, and the inconvenience of rising early, or standing in line, demonstrates a level of commitment and civil virtue.

Well, there are some good arguments against early voting, including the possibility of voter fraud.

But most of the people I saw today will stand in line and suffer more inconvenience than if they had stood in line at the polls tomorrow. They are not lacking in civic virtue, only willing to exercise the franchise if it is microwaved and served to them on a platter.

My party may not fare as well as I hope when the ballots are tallied tomorrow – we’ll see, for the only poll that counts is still in the field. But I remember the stirring of my heart when I saw the ink-stained fingers of Iraqis voting in the first election of their lives. If you believe in democracy and representative government, the sight of voters voting here has to make you believe in America.

Why The Strickland Administration Excuse Doesn't Hold Water on Joe the Plumber

There’s a hole in the argument about Joe the Plumber.

Joe, of course, was the subject of an impromptu investigation by the Strickland Administration. Government employees – at the direction of a cabinet officer! – took a look-see into government databases for dirt on Joe.

They looked at the CSEA dbase, the Bureau of Motor Vehicles dbase, and the records over in what used to be called the welfare department. Make no mistake: you can't get into those databases on your own. You have to have clearance, and then there are strict rules about your access that basically add up to this: official business only. You can't check up on your ex-girlfriend, or your daughter's new friends... or what your poltical opponents might be up to.

The cabinet officer who order the investigation of Joe the Plumber, Helen Jones-Kelly, is the director of Ohio Job and Family Services, the state's largest agency. She said it’s not unusual for your government to check up on people who are “suddenly” in the news. She pointed out the example of lottery winners as justification.

But here’s the hole in the argument: lottery winners have money. Lots of money. So, if they owe back child support, the CSEA should get some of it. And if they’re on welfare, the checks and foodstamps should stop.

But Joe the Plumber didn’t win the lottery. There was no new money to go after. So why where they looking at his personal information? Either Helen Jones-Kelly is really badly logic-impaired …. Or there was another reason for her order.

So, here’s a couple of facts… According to her own website, Director Jones Kelly earned her juris doctor at the University of Dayton. She’s a lawyer, and an experienced executive.

The Akron Beacon-Journal reported that she contributed $2,300 to the campaign of Barack Obama, the maximum contribution allowed by law for an individual.

My guess is she’s not logic-impaired. My guess is she thinks we are.