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A phone call from my son on Saturday afternoon is not unusual. What made last Saturday’s call unusual was where it came from. He was at Wal-Mart.

“What are YOU doing at Wal-Mart?I asked incredulously. “Haven’t you read about the building collapse in Bangladesh? Don’t you care that 1000 people died in an unsafe factory just so that American kids can go to school every Monday with brand new sequined T Shirts from Wal-Mart”?

The collapse of the Rana Plaza factory in Bangladesh is an American problem. It is not an American government problem. It is an American consumer problem.

For the last 20 years, the illusion of an American middle class life-style has been maintained by offering consumers cheap, imported goods on relatively easy credit terms. Wal-Mart led in development of this illusion but they are by no means alone.

This is the second Bangladeshi tragedy in 6 months that involves factories contracted to make clothes for Wal-Mart. Last November, 150 garment workers burned to death when they could not escape a raging fire burning through a substandard building. US news media, at the time, reported the retailer worried the fire would have an impact on US store inventories during the Christmas shopping season.

Have we become, in fact, the “ugly American” of the 1950s novel? Do we, the American people, have such a sense of entitlement? Can we be so oblivious to labor exploitation and human suffering?

There is growing evidence that it’s not indifference that has driven US consumer behavior but a lack of public awareness. The unnecessary deaths of 800 people leave the American consumer stripped of any illusions. Workers in Bangladesh, Vietnam and other developing nations are being exploited to satisfy our cheap and accessible fashion fetish.

In my America, this is not a problem our government should fix with tariffs, as some have argued. This is a problem you and I, everyday Americans can fix it! And we can fix it in a quintessential American way – with our wallets and our computers and smart phones.

On Saturday, I checked my closet. Sure enough, the incredible STEAL, my bargain of the season, a $9.95 pair of black floral print slacks from H and M had a small tag sewn into one of the darts. The single word printed on the tag = Bangladesh. I asked myself: Can I, in good conscience, wear the slacks? The answer is probably yes, I can’t un-ring that sale.

But I sent an e-mail to H and M to explain why I won’t be shopping in their stores, again, until they sign on to the Bangladesh Fire and Building Safety Program. The Program calls for the establishment of a factory safety program – independent of the retailer, Bangladeshi trade unions and, of course, the factories.

H and M, Nike, and Wal-Mart have issued statements of support for the establishment of the Program. It’s happening because American consumers are walking into their stores, sending e-mails, texts and tweets saying – no more.

The Bangladesh Worker Rights Consortium estimates that it will cost $600,000 per factory to bring garment factories up to US and European safety standards. If the program were stretched over 5 years, they claim, the cost would be as little as 10 cents per garment wholesale. Retailers could pass the cost on to consumers for a mere 25 cents per garment.

American consumers surveyed by a major US retailer have indicated they’d be willing to pay $1.00 more per garment if that guaranteed safe working conditions, adequate wages, and the elimination of child labor in the developing world. We’ve got to turn that sentiment into immediate action.

As consumers, we cannot allow major retailers to hope the crisis passes and business-as-usual prevails. By purchase decision, by talking to store management, by writing, by texting, by Facebooking, by Tweeting — US consumers must make it emphatically clear to major retailers that we expect them to do more, faster.

In time for the 2013 Christmas season American consumers should expect major retailers to have the Bangladesh Fire and Building Safety Certificate garment tags on their merchandise. Without the certificate, we won’t buy the garment!

That’s the American consumer living American values. Nothing could send a stronger signal to the world that the American people embrace their role as the conscience of the global village.

That’s my America!

Further Reading:

 


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I had the privilege of meeting Senator Marco Rubio (R-Florida) a couple of days ago.   He is gracious, engaging and even more youthful in person than on TV.  He has the practiced charm of a politician who can look you straight in the eye while delivering a non-answer to a simple question.

In the couple of moments I had with him, I told the Senator how disappointed I was that he had voted against the Manchin/Toomey gun safety background check amendment.  The Senator’s response, delivered with a straight face, “We need to enforce the gun control laws on the books today.  That will help to stop gun violence.”   Huh?  With all due respect, Senator, are you serious?

On an average day in America, the sort of day that does not result in a Presidential condolence call or 24 hour news coverage; the Center for Disease Control reports –

  • 30 gun related murders
    • 162 survivable gun shot wounds and
  • 53 suicides by gun–

That’s about 30,000 gun related deaths a year in the United States even if there are no unthinkable large scale events like Newtown, Aurora and Tucson

If that’s not a public health emergency, then I don’t know what is!

If there were a flu outbreak that killed a fraction of 30,000 people most Americans would clamor for the government to do something to insure public safety!

Since the December,2012, Newtown, Connecticut, shootings every single public opinion poll shows that is exactly what the American people are clamoring for in the form of common sense gun licensing laws.  They want stiffer background checks as a matter of public safety – a vaccine – if you will!

  • Even 85% of NRA (National Rifle Association) members believe that stronger and broader background checks are a matter of public safety!

Current federal gun safety law relies on data provided by the states as well as federal records. An applicant must provide proof of identity, proof of American citizenship, and proof that they are at least 21 years old. The background check also verifies that the applicant has never been Takes as little as 5 minutes to complete.

But the background check only applies to federal licensed gun dealers and federal licensed internet dealers (who deliver only through the licensed dealer nearest the customer – for purposes of identification). The background check is not required at gun shows or on private sales between two unlicensed individuals over the Internet.

Manchin/Toomey proposed to strengthened the background check by including all gun show sales and all internet sales between two private individuals (ala Craig’s list)

The amendment would, also, strengthen requirements on the states to provide more and more timely data to keep the federal “no sale” data base up-to-date.

Nothing more.

There are no restrictions on — gun model or gun type or ammunition magazines. The amendment specifically forbids the federal government from establishing any sort of registry of the applicants or the results.

Senator Rubio’s staff explains his position as consistent with the phone calls and e-mails to his office — overwhelmingly opposed to the amendment.  When asked, they acknowledge they never stopped counting the calls to wonder why their numbers were so inconsistent with the polling data.

Call me naive, but I assume a smart politician would want to reconcile such widely different numbers before committing.  That’s what a smart business man or woman would do.

Of course, reconciling the perplexing discontinuity should have happened before he voted last week but there is still time.

Public outrage, militant advocates and the terrorizing gun battle on Boston streets will only raise the national drumbeat for sensible gun safety legislation.

Next time, instead of filling the campaign coffers in Nevada, Senator Rubio should take a listening tour through Florida!

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The National Science Foundation (NSF) is studying US tax payer attitudes toward the Senate using $251,000 from research budgets of the Department of Defense and the Department of Veterans Affairs!

Sounds crazy doesn’t it?

Senator Tom Coburn (R-Oklahoma) argues that the American people have a daily opportunity to determine their attitude toward the Senate, or the President for that matter, for “free”.

The “free” part I am not so sure about.  After all, the Senators are paid — by  tax payers!!

And beyond that, Senators and others in government and academia get plenty of free data from the ever growing and ever present opinion polling industry.

Senator Coburn’s point was, of course, to remind Senators that not every dollar of federal spending is equally necessary or in the best interests of the American people.

Seems the Senate was sufficiently embarrassed.   They passed the senator’s amendment to HR 933 – the 2013 Continuing Resolution– on a voice vote!!!

The amendment’s language points to the difference between how the government and the private sector employ baseline budgeting as a planning and management tool.

  • In the private sector, such frivolous spending would result in an immediate reduction in the department’s budget.
    • And serious questions for the Department Head!
  • To the contrary, this amendment directs the Departments of Defense and Veterans Affairs  to spend the funds on other research priorities (national security or economic growth).
    • Assumes there is valuable research they’ve not been able to fund?

If experience had not taught us better, we might assume the public attitude study was only proposed to give appropriators something to cut?

But, alas, we do know better.

The questions are –

  • Why does Congress ALWAYS assume that government spending must grow?
  • Why do members of Congress behave like children on Xmas – enjoying only the newest spending and never going back to test the effectiveness of (and necessity to continue) previously approved spending?
    • Why doesn’t Congress “sunset” appropriations?

If you agree with Senator Coburn and www.Reimagineamerica.org that federal government spending must be more effectively managed and monitored, send him a personal Thank You note or forward this blog to him!

 

 

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There is nothing inherently wrong with the accounting method Baseline Budget.  However, Baseline Budgeting, as codified by the 1974 Congressional Budget Act, is both wasteful and lazy.

Congress’s current use of Baseline Budget is an obstacle to achieving an efficient, effective 21st century Federal Government!

Each year, the baseline for the budget is calculated by the Congressional Budget Office by

  • Summing the current year spending (by budget appropriation)
    • Farm subsidies
    • Social Security
    • Foods Stamps  etc..
  • Then adding an estimate of population growth for the subsequent budget year.
  • Last calculating into the baseline an anticipated growth factor of an average 7%.

The result is obvious.   The government can only get bigger.  The law, effectively, limits Congressional appropriators to decide how much bigger?

Even bally-hoo’d and much debated $85B Sequester is not a real reduction in spending.  It’s only a reduction in the rate of increased spending in 2013 over 2012 – from 7% to <4%.   Service cuts will not be the result of insufficient funding but inadequate management –

  • If the TSA airport security line took 10 minutes in 2012, it should not take longer in 2013
  • If the Secret Service could man the White House Security gates AND escort visitor tours in 2013, they’ve got more money (not less) to do that in 2013.
  • If the Bureau of Land Management can’t process energy permits on public lands at the same rate as last year, they are depriving the Treasury of needed revenue –
    • And why can’t they maintain the same number of campgrounds with only a 4% increase in funding?

Baseline Budgeting is lazy.  Once an item is in the baseline budget, it is there to stay.

Just today, the 2013 Senate Continuing Resolution (CR), repurposed a $500M appropriation from Space Shuttle program.  The Shuttle program was cancelled in 2009!  The $500M will be used, instead, to modify some Sequester priorities.  The CR passed by a vote of 73 to 26.

Did no one in Congress care enough to examine NASA’s budget over last 4 years?

The Congressional Budget Office, the Government Accountability Office, and the Congressional Research Service plus the Inspector Generals regularly publish their findings of waste, fraud and abuse on a grand scale in the Federal Budget.

  • Congress should appoint a Select Committee to take a sharp pencil to the Budget
    • By the end of 2013.
  • But it won’t happen.
    • No one in Congress has the courage to explain to the American people 40 years of compounding over-spending by Washington!!!

If you agree, forward this blog to your Senator or Representative or leave a comment here!

 

 

 

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The battle of the dueling House and Senate budgets is about to begin.   All Americans should celebrate this milestone.  It has been four years since the United States Congress actually debated and passed a budget.

This is a major step forward, for two reasons –

  • First, it is impossible to control spending without at least setting reasonable spending targets
  • Second, Congress has skin in the game – i.e. No Budget/No Pay kicks in April 15!!!

However,

  • before anyone becomes giddy with excitement
  • jumps up to dance an anticipatory Irish jig
  • or breaks into a chorus of Happy Days Are Here, Again –

let’s not minimize the differences between the House Budget and the Senate Budget.

Still, the fact that both Houses of Congress came to the conclusion that there must be a budget and that they must work together through a reconciliation process is a first step toward the sustainable 21st century America that we all want.

And, whether cynically political or a real gesture toward his legacy, the President’s out reach to Republican Senators, especially, demonstrates the real leadership role he can play in this process.

The President gets to choose whether it is going to be politics (a win/lose) or governing (a win/win).

In the private sector, we know that the latter is the road to prosperity.  By talking across the table, the participants in the “deal” can move from NO, Not Now, Not Ever to “sure we can do that” step by step, item by item.

Negotiation is the art of LISTENING for the kernel of agreement in a field of apparent conflict. That kernel is the seed that can grow into a broader consensus.   For example, in the federal government’s 2014 budget –

  • Both sides are concerned about the rising cost of entitlements, but there is no clear path to reform.
    • There is time, yet, to explore alternative paths to reform!  It DOES NOT HAVE to be done in 2013 –
    • But it must be done before 2016.
  • It is clear that while Republicans oppose tax increases, there is a path to, at least, corporate TAX REFORM– along the lines Simpson/Bowles proposed.
    • A boost to the economy, business formation and job creation
    • And a boost to tax revenues.

While budgets are projected out 10 years, the budget process is done annually.  A smaller deal on the “baseline” cost of government this year can be the start of a broader agreement in subsequent years.

  • It reminds both Congress and the President that governing is an incremental exercise rather than a “Hail Mary Pass”.
  • Divided government is not an accident.  It is a conscious decision voters make –

Senator Lamar Alexander (R-Tenn) summed up the opportunity, and the President’s challenge – in a single sentence.  “.. He needs to lead in a particular direction “with a number of us following – or walking beside him”.

While not yet cause for celebration, there is, at least, a reason for optimism.

 

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