The falling value of the dollar should be dramatically boosting our exports. This should increase domestic employment. Believe it or not, we're seeing some of that. Otherwise, our unemployment numbers would be even higher than they are. A major reason we are not seeing a greater benefit is because the American labor market is not structured for international competition.
A big hindrance to American labor's competitiveness around the world is the tying of health care to employment. We expect employers to provide health insurance for the employees. This one item adds significantly to labor costs. If we did not participate in a global marketplace, we could continue this practice indefinitely. Or, if the rest of the world followed this same model we could continue this approach to health care with no adverse consequences to our competitiveness. But, that is not what the other industrialized nations of the world are doing.
Nearly all the other major industrialized nations have some sort of government provided health care which leaves private businesses completely out of the picture. That means those businesses have no health care expenses associated with their labor costs. In comparison with American labor market, it is as if those foreign businesses were having a portion of their labor costs subsidized by their governments. That is a significant competitive advantage. It is so significant, in fact, that if it were a more direct subsidy, the United States would be suing those countries in the World Trade Court for unfair practices.
It would be extremely arrogant to expect the rest of the world to change to our system of health care. They happen to like their way. Many U.S. companies that have shifted parts of their operations abroad like their way also. Being able to operate without the costs of health care has been a driving factor in the export of jobs.
American labor can hardly be expected to suddenly give up employer provided health care with nothing to replace it. That would be a catastrophe. We can't fault American businesses for wanting to keep expenses down, either. Without some remedy, the steady export of jobs abroad will likely continue.
There have been a lot of proposals circulated to address the problem of Americans who either have no health care insurance or are woefully under insured. A significant number of these would place the burden for this insurance on the backs of the employers. In terms of world trade, this is exactly the opposite of what needs to be done.
To improve their global competitiveness, our businesses need for us to adopt a government provided system of universal health care. There are ways this can be done without putting the insurance companies out of business. In fact, depending upon how such a program is structured, it could even increase their business. This would be a win for businesses because their domestic costs would go down. This would be a win for labor because it would be easier for companies to add more jobs. That is why both business and labor should be leading the crusade for universal health care.
That's Wade's two cents.
Wade Houston
July 9, 2008
Wednesday, July 9, 2008
Thursday, July 3, 2008
Wake Up to the Abundance of Energy
Energy finally seems to be getting the attention it deserves. People are recognizing the rising demand around our planet, and many are talking about energy shortages as developing nations start utilizing more energy themselves. But the reality is that we are surrounded by an abundance of energy. The earth is truly blessed.
The mindset of energy shortage comes from a tunnel vision focus on fossil fuels. That limited focus is drying up supplies and poisoning our planet. What is needed instead is for developers to take off their blinders and wake up to the enormous supply of untapped energy that surrounds us. I am not talking metaphysics here. I am talking about natural energy.
Here's one example. Long range forecasters are predicting some critical fresh water needs in the future that current delivery systems cannot accommodate. Many areas are already feeling the strain. Obviously, more needs to be done with water reclamation. But additionally, many are calling for much more to be done with the desalination of seawater. A major obstacle to that has been the high energy demand of such operations. Imagine, though, a desalination plant that harnesses the local power of the tides, the wind, and the waves to generate the electricity required to operate and pump the water. The output of the plant might be somewhat variable, but it would take no energy from the grid. Instead, the facility takes the energy from its environment.
We need to get away from the all or nothing approach to supplying our electrical energy needs. There is an enormous amount of energy lost in transmission from a central location. Envision, instead, a community in which every building has roof shingles that not only perform the usual protective functions but also convert sunlight into electricity for use in that building. In most locations, this would not be enough to substitute for the electrical grid, but it could certainly supplement. If the building is making use of a subterranean heating and cooling system, the power to provide the air circulation could all be generated on site. (Google "subterranean heating and cooling" for more information.)
This sort of decentralization of power supply can make an enormous difference in parts of the developing world where the infrastructure for power delivery has not been put into place. In many respects, it is similar to the way in which cell phone service has reached many areas were there are still no telephone land lines. These countries will be able to modernize more quickly and with less investment in infrastructure with this type of technology. As a bonus, it will have less negative impact on the environment.
What we need now and in the future is more creative energy. Sometimes, we need new technologies. Sometimes we just need new applications of very old technologies. Either way, we'll be drawing upon the abundance of energy that already surrounds us.
That's Wade's two cents.
Wade Houston
July 3, 2008
The mindset of energy shortage comes from a tunnel vision focus on fossil fuels. That limited focus is drying up supplies and poisoning our planet. What is needed instead is for developers to take off their blinders and wake up to the enormous supply of untapped energy that surrounds us. I am not talking metaphysics here. I am talking about natural energy.
Here's one example. Long range forecasters are predicting some critical fresh water needs in the future that current delivery systems cannot accommodate. Many areas are already feeling the strain. Obviously, more needs to be done with water reclamation. But additionally, many are calling for much more to be done with the desalination of seawater. A major obstacle to that has been the high energy demand of such operations. Imagine, though, a desalination plant that harnesses the local power of the tides, the wind, and the waves to generate the electricity required to operate and pump the water. The output of the plant might be somewhat variable, but it would take no energy from the grid. Instead, the facility takes the energy from its environment.
We need to get away from the all or nothing approach to supplying our electrical energy needs. There is an enormous amount of energy lost in transmission from a central location. Envision, instead, a community in which every building has roof shingles that not only perform the usual protective functions but also convert sunlight into electricity for use in that building. In most locations, this would not be enough to substitute for the electrical grid, but it could certainly supplement. If the building is making use of a subterranean heating and cooling system, the power to provide the air circulation could all be generated on site. (Google "subterranean heating and cooling" for more information.)
This sort of decentralization of power supply can make an enormous difference in parts of the developing world where the infrastructure for power delivery has not been put into place. In many respects, it is similar to the way in which cell phone service has reached many areas were there are still no telephone land lines. These countries will be able to modernize more quickly and with less investment in infrastructure with this type of technology. As a bonus, it will have less negative impact on the environment.
What we need now and in the future is more creative energy. Sometimes, we need new technologies. Sometimes we just need new applications of very old technologies. Either way, we'll be drawing upon the abundance of energy that already surrounds us.
That's Wade's two cents.
Wade Houston
July 3, 2008
Wednesday, July 2, 2008
Best Way for Hillary Clinton to Help Barack Obama
The last of the 2008 presidential primaries are behind us. It is clear that Barack Obama is going to be the Democrat nominee. All of his opponents have endorsed him. That includes his most enduring competitor, Hillary Clinton.
Senator Clinton has promised to do everything she can to support the election of Barack Obama. She is committed to seeing a Democrat elected to the White House. That invites the question, "How can Hillary Clinton's services be put to the best use?"
Certainly, Senator Clinton can go a long way to persuade those who supported her in the nomination process that their best next option is to support the election of Barack Obama. This is probably the single most important task for Hillary Clinton. Her consistent enthusiastic message has to be that Barack Obama must become the next President of the United States.
But, what about outside her base of support? Hillary Clinton comes with baggage. There are some people in this country who were determined to vote for anyone who was running against her. Of course, the majority of those aren't going to vote for Senator Obama, either, but some will. Obama needs to use Hillary Clinton's support to the best advantage without stirring up energy for the opposition. That is the challenge.
My recommendation would be that Senator Clinton hit the campaign trail stumping for other Democrats running for office. At every stop she can encourage people to support Barack Obama for President by voting for him and also sending to Washington people who will support his policies. This would need to be done carefully to see that she only appears with candidates in areas where her support is a net benefit, but it could help the Democrats enormously.
This approach is a win for Hillary Clinton as well. Much of politics is based on trading favors. By campaigning for other Democrats seeking office, Clinton builds political capital she can use to push policies in the Senate later.
That's Wade's two cents.
Wade Houston
July 2, 2008
Senator Clinton has promised to do everything she can to support the election of Barack Obama. She is committed to seeing a Democrat elected to the White House. That invites the question, "How can Hillary Clinton's services be put to the best use?"
Certainly, Senator Clinton can go a long way to persuade those who supported her in the nomination process that their best next option is to support the election of Barack Obama. This is probably the single most important task for Hillary Clinton. Her consistent enthusiastic message has to be that Barack Obama must become the next President of the United States.
But, what about outside her base of support? Hillary Clinton comes with baggage. There are some people in this country who were determined to vote for anyone who was running against her. Of course, the majority of those aren't going to vote for Senator Obama, either, but some will. Obama needs to use Hillary Clinton's support to the best advantage without stirring up energy for the opposition. That is the challenge.
My recommendation would be that Senator Clinton hit the campaign trail stumping for other Democrats running for office. At every stop she can encourage people to support Barack Obama for President by voting for him and also sending to Washington people who will support his policies. This would need to be done carefully to see that she only appears with candidates in areas where her support is a net benefit, but it could help the Democrats enormously.
This approach is a win for Hillary Clinton as well. Much of politics is based on trading favors. By campaigning for other Democrats seeking office, Clinton builds political capital she can use to push policies in the Senate later.
That's Wade's two cents.
Wade Houston
July 2, 2008
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