Monday, July 30, 2007

$200,000 a minute

That's the current cost of the Iraq war, as quoted by Bob Sheiffer of Face the Nation on Sunday. It astounds him and it astounds all Americans I am sure. The question I have is what is America getting for this amount of money? Incredibly, a recent audit found that only 42% of a major contractor's projects in Iraq have been completed.

"The cost for unfinished efforts was high: the US government approved a total of US$180 million in payments for Bechtel’s ten allegedly unfinished projects. They include a US$24 million water treatment plant in Baghdad's impoverished Sadr City, a US$26 million children's hospital in Basra and a US$4 million Baghdad landfill that was never built"
http://www.bi-me.com/main.php?id=11956&t=1&c=33&cg=4

If that is not enough, there has been careless contract monitoring and supervision. Bob Shieffer reported that a recently completed water plant was shut down because a $90 million turbine was ruined due to an unqualified worker using the wrong fuel.
http://www.cbsnews.com/stories/2007/07/29/opinion/schieffer/main3108184.shtml

The headline this morning is that there are 8 million people in Iraq that are in "urgent need of water, food and shelter" And 70% are without adequate water supplies...
http://www.msnbc.msn.com/id/20031683/

Meanwhile, back in the United States, President Bush is likely to veto a bill increasing funds for children's health insurance for those who make too much to qualify for medicaid. The revenue would be obtained by increasing the federal excise tax on cigarettes by 61 cents.
http://sfgate.com/cgi-bin/article.cgi?f=/n/a/2007/07/14/national/w200608D60.DTL&type=politics

The majority of American people, I believe, have stated that they want improvement in the health care system and they want an end to the cost in dollars and lives in Iraq. We can only hope the next administration will listen.

Friday, July 27, 2007

It's the Economy, Stupid

After yesterday's dramatic stock decline, President Bush's economic team pointed to the strength of the global economy, the improvement in US exports and the strength of the eunderlying economy. Although Dylan Ratigan of CNBC did a fine job, I found myself wishing he had asked a few more questions. For one, specifically what products are the US exporting more of? To quote from Al Gore's recent book, Assault on Reason:

"When I visit port cities like Seattle, New Orleans, or Baltimore, I find the same sad story. Many massive ships running low in the water, heavily burdened with foreign cargo or foreign oil arrive by the thousands. These same cargo ships and tankers depart riding high with only ballast water to keep them from rollling over. Instead of goods, we send money, electronically, in the appropriate direction."


Is it cars we export more of? Computers? Televisions? Cameras? The answer to all of these is no. We do, however, export cigarettes. See the following from MSN moneycentral:

"Altria Group, Inc. announced plans by its tobacco subsidiaries to optimize worldwide cigarette production by moving U.S.-based cigarette production for non-U.S. markets to PMI facilities in Europe" Due to declining U.S. cigarette volume, as well as PMI's decision to re-source its production, PM USA will close its Cabarrus, NC manufacturing facility and consolidate manufacturing for the U.S. market at its Richmond, VA Manufacturing Center." http://news.moneycentral.msn.com/ticker/sigdev.asp?Symbol=MO

The Bush economic team, of course, mentioned controlling spending and keeping taxes low. I can't imagine a more costly expenditure than the Iraq war and I can't imagine that average Americans can benefit from the taxcuts proposed for those who earn over $250,000 per year.

John Edwards spoke on CNBC recently and presented a sensible economic policy for all Americans. Let's hope it won't be too late by the time a Democrat gets into the executive.