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*Opinions expressed here may or may not reflect the views of the Fernley Republican Women. Blog posts should not be considered an endorsement from the FRW.

Mom Jensen Would Have Turned 100 Last Sunday

5/3/2021

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​I wrote the following remembrance two-and-a-half years ago.
Surrounded by her loving family, Christena Kathryn Jensen departed peacefully for Heaven Wednesday, October 24, 2018 at age 97.  Daughter Kathy Knecht, granddaughter Karyn Knecht and son-in-law Ron Knecht all loved her dearly and will miss her forever.
She was born May 2, 1921 in the Bay Ridge section of Brooklyn New York to wonderful parents Robert and Christena Hammond and had a younger sister Doris (who predeceased her).  When she was a girl, her father occasionally took her to Dodger games at Ebbets Field, which later made Ron envious.
Christena attended the College of William and Mary for a year before transferring to Skidmore College and obtaining her BA in 1943 as an English major.  She worked on Wall Street and then attended Columbia University’s School of Occupational Therapy, receiving a certificate in 1945.  From 1945 to 1953, she worked as an occupational therapist at four hospitals in the northeast.
In 1953, she and her friend Betty travelled to Europe, spending some months in Spain, which they enjoyed immensely.  Upon returning, Christena served three years as an occupational therapist at the Veterans Administration Hospital in Palo Alto California.
In 1958, she took an administrative job at Lockheed Missiles and Space Division in Palo Alto.  There she met LaVern C. Jensen, an engineer and later administrator at Lockheed.  Like Christena, Vern was one the nicest and most interesting people ever.  After a first dinner date, much boating and other dates, they were married in a small family ceremony November 28, 1959.
They had a great honeymoon road trip through many national parks in California, Nevada, Utah and Arizona, which only whetted their appetite for more travel.
In 1960, they drove from California to New York in her 1957 Chevy, the first of a few classic Chevies they owned.  They flew with Betty and her husband to London, where both couples had arranged to buy TR3s (red for the Jensens, white for the other couple) in which to tour Europe.
They visited the home sites of Jensen families in Norway and Sweden, and saw much of the continent during a rainy period.  They slept on a straw mattress in Venice and loved Italy.  Returning to London, they flew to New York and drove back across the continent in the Chevy because their TR3 would not arrive for some weeks.
With a new home and more boating, they were very happy.  And happier still when their only daughter Kathy arrived in 1961.  They lived for a while with Vern’s parents as they fixed up their home, but kept traveling.
Kathy stayed with her grandparents while they visited the 1965 New York World’s Fair and New England.  And in 1969, Japan, Taiwan, Hong Kong, the Philippines, Singapore, Malaysia and Thailand.  The three moved to Los Altos in the 1970s, and stayed there through the 1990s.
In 1975 they went to Mexico and in 1976 returned for an extensive tour of Europe, both times taking Kathy.  The next year they made a road trip to Lily, South Dakota – now a ghost town – to show Kathy where her father’s family lived before fleeing the Dust Bowl and Great Depression with only their suitcases.
In 1979, it was the Hawaiian Islands.  Then road trips in 1983 to San Simeon and Hearst Castle and in 1985 to Texas.  Also, in 1985 they returned to England and Scotland and visited the Hammond home sites.  In 1986, it was Florida to visit relatives.  Later trips to Spain, Morocco, the Amazon and China didn’t include Kathy, who stayed home to work and take care of the pets.
Surrounded by Christena, Kathy and Ron (then engaged to Kathy), Vern died in 1997 from mesothelioma caused by his work in World War II in the Marin ship yards.
After the birth of granddaughter Karyn in 2001, the family moved to Carson City.  Ron has always said the three-generation household is ideal.  Christena was a great mentor to Kathy and said her life was greatly enriched watching Karyn grow up.
To Kathy, like Christena in many ways, she was the ideal mom.  To Karyn, the perfect grandmom.  And to Ron, the best mother-in-law ever.
Ron Knecht is a Senior Policy Fellow at the Nevada Policy Research Institute.  Contact him at RonKnecht@aol.com. 
Ron Knecht

775-882-2935
775-220-6128
 
www.RonKnecht.net
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Full Disclosure: I’m Proudly Associated with NPRI

4/27/2021

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​This is full disclosure for my readers, but really a celebration of one of the best things about Nevada and my good fortune to become a part of it.  Recently, John Tsarpalas, President of the Nevada Policy Research Institute asked me to join that public interest group in some capacity.
More than honored, I was thrilled.  We discussed it briefly, and I became Senior Policy Advisor at NPRI.  Let’s start with their mission statement:
“Nevada Policy’s mission is to effectively promote policies that encourage free-market solutions, protect individual liberties, and eliminate unnecessary governmental restrictions on the citizens and businesses of Nevada.
“In order to accomplish this mission, we:
·       Use fact-based information to create policy and to educate the public.
·       Analyze legislation, regulation, and litigation to inform citizens of Nevada about intended and unintended consequences.
·       Leverage social and public media to inform current and future citizens of Nevada.
·       Collaborate with other like-minded organizations to leverage freedom-promoting policies and laws.
·       Advocate for policies that unleash the creative power of free markets and free people.
·       Concentrate our work on areas that have profound impact on the freedoms of Nevadans: state budgetary concerns, school choice, taxation, criminal justice reform and transparency in government.”
These are almost all of what has motivated my involvement in public affairs the last 20 years since coming to the Silver State.  And before, during my last dozen years in the Golden State.  We’re a perfect match.
Equally good matches are the other people of NPRI.  Besides Tsarpalas, Chairman Ransom W. Webster and the board, these include Robert Fellner, Daniel Honchariw, Michael Schaus, Kelly Smith, Megan Heryet and Keith Beauvais.
Among the many outstanding alumni of NPRI is Geoffrey Lawrence, who I recruited when I was elected state controller in 2014 to become Assistant State Controller.  As I knew he would, Geoff did an outstanding job.  So, to spite us both, Governor Brian Sandoval cut his position from our budget.  Of course, Geoff has gone on to do many other outstanding things since then.
In 1990 Judy Cresenta, traveled to the Soviet Union to train pro-democracy leaders in the principles of free markets and free elections.  Upon returning the next year, she realized there was a widespread need for such education in the United States and she founded NPRI.
NPRI has produced innovative policy solutions in many areas: Nevada’s Public Employee Retirement System; the effect of the so-called Affordable Care Act on Nevada’s Medicaid spending; revenue-neutral tax reform; an alternative state budget; collective bargaining reforms; federal ownership of Nevada lands; sound energy policy; and school reforms, including the most expansive school choice program in the nation.
As controller, my annual reports and other publications addressed many of these subjects, sometimes relying expressly on NPRI’s work.
Since 2013, NPRI has issued a biennial publication for lawmakers titled Solutions.  Recent versions address over 50 subjects.  Legislators and staff regularly reach out to NPRI for advice and analysis, and the Institute’s analysts frequently testify before legislative committees.
News media frequently turn to NPRI for comment on breaking news and for their research, information campaigns and litigation efforts. NPRI receives coverage regularly in major Nevada media outlets and numerous national outlets, including the Wall Street Journal.
Expanding government transparency is a major NPRI focus, and so it has published government employee compensation and retirement information since 2008 on TransparentNevada.com.  Its affiliate TransparentCalifornia.com has earned more than 250-million page views and is ranked in the top 0.001 percent among the most heavily trafficked websites nationwide.
That’s just a partial account of its good works.
Many readers know that I have been greatly slowed the last year by three major surgeries (one really major) and a number of minor ailments.  But all that seems to be receding into the rear-view mirror now.  Hence, I look forward to being able to contribute regularly and substantially to NPRI.
I highly recommend that you contribute to this outstanding non-profit organization.  Kathy, Karyn and I have done so for years, and my work will be free to them.  To do so, go to npri.org.
Their budget of less than $1-million annually is funded 89 percent by contributions and grants, with two-thirds spent on salaries, other compensation and employee benefits.
Ron Knecht has served Nevadans as state controller, a higher education regent, economist, college teacher and legislator.  Contact him at RonKnecht@aol.com.  

Ron Knecht

775-882-2935
775-220-6128
 
www.RonKnecht.net
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Earth Day + 51 Years: We’re Still Here & Having Fun

4/20/2021

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​At the Sundance Film Festival in January 2006 premier of his documentary “An Inconvenient Truth” Al Gore warned, “Unless drastic measures to reduce greenhouse gases are taken within the next ten years, the world will reach a point of no return.”  He said we were in “a true climate emergency.”
But Earth hasn’t warmed in 20 years.  Supposedly, 2015 smashed the previous temperature record, but actually it was only the third hottest year on record and maybe not close to the hottest.  Nor have there been more or more extreme weather events.  Nor has sea level risen 20 feet.  No ecological collapse.  There’s still lots of snow on Africa’s Mount Kilimanjaro and polar bears are plentiful.  All defying the alarmists’ predictions.
Still, Gore’s habit of making silly predictions about anthropogenic (man-caused) climate warming puts him in good company with many climate alarmists.
As climate scientist H. Sterling Burnett explains, “The big lie (about impending climate catastrophes) is built on a faulty premise that science can realistically trace the cause of modest recent warming of the earth primarily to human greenhouse gas emissions, and that from this we can confidently predict what the world will look like 50, 100, and 300 years from now.”
As award-winning climate scientist Richard Lindzen said, people “can’t believe that something so absurd could gain such universal acceptance.”
Perhaps the most famous ridiculous claim – fraud, actually – came in 2001 when the United Nations Intergovernmental Panel on Climate Change (IPCC) sought to replace settled climate history with the “hockey stick” graph.  That graph denied the long-recognized medieval warm period of 950AD to 1250AD and the little ice age of 1350AD to 1850AD, claiming that for 2000 years the average earth temperature graph had been essentially flat like the hockey stick handle.
The 20th Century, however, had seen a rapid rise in temperature, due to an increase in carbon emissions.  Like the hockey stick blade.  Ultimately, the hockey-stick thesis was so completely debunked by good scientists with sound data that the IPCC had to abandon it.
The academics who conjured up the hockey stick were found to have knowingly falsified the data in Climategate.  A treasure trove of inconvenient emails was hacked and leaked, showing their efforts to “hide” key facts and conspiracy to damage scientists who debunked their model.
Next, the Surface Station Project exposed the fact that 20th Century temperature readings from the vast majority of ground-based stations were artificially inflated by the urban heat island effect and from unjustified adjustments.  The readings from sea-based measurements were artificially adjusted upwards by researchers at the National Oceanic and Atmospheric Administration.
According to the book, “Hot Talk, Cold Science: Global Warming’s Unfinished Debate”, by world-renowned astrophysicist and climate expert S. Fred Singer and others, further findings by reputable climate scientists include that carbon-dioxide (CO2) has not caused temperatures or sea levels to rise beyond historical rates.  Also, global climate change has not harmed coral reefs.  And CO2 concentration increases across long time spans have followed rising global temperatures by 600 to 800 years, not preceded them as alarmists claim.
The book “Unsettled: What Climate Science Tells Us, What It Doesn’t, and Why It Matters” is to be published next month by Steven Koonin, who was chief scientist at the Obama Energy Department.  It shows that the problem is not only much weak science but especially the bastardization of all the science by the political and media classes, including the IPCC.
A Wall Street Journal reviewer writes, “You will come to doubt the usefulness of century-long forecasts claiming to know how 1% shifts in variables will affect a global climate that we don’t understand with anything resembling 1% precision.”
Koonin, Burnett and other reputable climate scientists recognize the limits to the computer models on which alarmists base many scares.  They (and I) also agree there has been slight warming since 1900 and there will be similar further warming this century from CO2 increases already baked into our atmosphere, but no runaway effects.
And wholesale abandonment of fossil fuels isn’t justified, but renewed reliance on nuclear power is.  Also, the warming so far has made the Earth greener.
So, don’t worry; enjoy Earth Day for many years to come.
Ron Knecht has served Nevadans as state controller, a higher education regent, economist, college teacher and legislator.  Contact him at RonKnecht@aol.com.  
Ron Knecht

775-882-2935
775-220-6128
 
www.RonKnecht.net
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Separating Facts and lies in Daunte Wright’s Death

4/14/2021

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​
​Daunte Wright, 20, the Black father of a two-year old boy, was shot and killed in a police traffic stop in Brooklyn Center, MN Sunday.  Kimberly Potter, 48, the White officer who shot him and a 26-year veteran of the local police force, said the shooting was an accident, and she has resigned from the force.
After the stop for an expired license plate, officers learned Wright had outstanding warrants, including carrying a pistol without a permit, and they started to take him into custody.  Police body-camera videos of the stop show Wright physically resisted arrest and sought to escape.  Potter drew an arm from her side and at least four times threatened to tase him.
When she shot, it was her side arm, not taser, in her hand and she appeared shocked at the mistake.  He died at the scene.
Wright’s mother said her son was an “amazing loving kid” with “a big heart.”  She added, “He just had his whole life taken away from him.  We just had our hearts pulled out of our chests. He was my baby.”
Wright’s relatives said he was a good-natured father who worked multiple jobs to support his son.  “My brother lost his life because they were trigger-happy,” claimed Dallas Wright, his older half-brother.
“I have loved every minute of being a police officer and serving this community to the best of my ability, but I believe it is in the best interest of the community, the department, and my fellow officers if I resign immediately,” said Potter in her resignation letter.  Local officials have charged her with second degree manslaughter.
Brooklyn Center Mayor Mike Elliot, also Black, said Monday Potter should lose her job and said Tuesday the city was working through the process of firing her.  He also said on national television he believes officers should not be armed when making traffic stops.
Data and videos have shown that traffic stops and other police actions, can be very dangerous, leading to deaths of officers as often or more than to the deaths of Black civilians by White cops.
Police Chief Tim Gannon said he thought the shooting was an accident, but the video should determine whether Potter should be returned to the force.  He also resigned.  The City Manager was fired for saying Potter should receive due process, which is guaranteed by the United States Constitution.
Mother Wright’s grief is something legitimate with which we completely sympathize.  By all accounts, she has confined her comments to a mother’s grief and has not made accusatory statements. Dallas Wright’s statement includes an unfounded accusation, forgivable in context.
On national television, the mayor said, “In this country, if you’re black and you get pulled over by the police, you have a very much higher chance of being dead just because you’re black, and just because you’re encountering police."  He added, "We've seen this far too many times where a young black man or woman is pulled over by police or encounters police and they end up dead. People protesting are asking when will this stop."
The first statement makes him a hate-filled lying racist and unfit to be mayor.
The American Civil Liberties Union of Minnesota said it had "deep concerns that police here appear to have used dangling air fresheners as an excuse for making a pretextual stop, something police do all too often to target Black people.  …  While we are waiting to learn more, we must reiterate that police violence and killings of people of color must end, as must the over-policing and racial profiling that are endemic to our white supremacist system of policing."
This is the typical ACLU’s hate-driven racist pack of lies and disregard for the facts.  It was reported by MSNBC, which took great pains to avoid reporting the weapons arrest by calling it a “gross misdemeanor warrant.”  All major mainstream media outlets, except FOX and the Epoch Times, went to similar lengths to make their stories sympathetic to Wright’s actions and accusatory of racism.
They and the Antifa, Black Lives Matter and other rioters, looters and vandals in the streets of various cities this week, and all their apologists are similarly racist hate-filled liars.
Ron Knecht has served Nevadans as state controller, a higher education regent, economist, college teacher and legislator.  Contact him at RonKnecht@aol.com. 
Ron Knecht

775-882-2935
775-220-6128
 
www.RonKnecht.net
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MLB and Other Corporate Bullying and Hypocrisy

4/6/2021

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​Readers of this column know I’m a big baseball fan, especially of the Los Angeles Dodgers and Baltimore Orioles.  So, Major League Baseball’s “woke” cancel-culture decision to move this year’s All-star game from Atlanta to Denver due to an election reform measure Georgia passed presents a real conundrum.
Especially because the first person to raise the issue was Dodger manager Dave Roberts.
Georgia, which had a number of problems with its two most recent elections, took sensible actions to ensure future elections do not suffer the same problems and are completed, including vote counting, quickly and fairly.  The state wanted to assure that all legitimate votes are counted and no illegitimate ones are.
But progressives and other leftists falsely attacked the Georgia measures by mischaracterizing the statute’s terms and purposes.  MLB and some other corporate bullies promptly caved in to the cry-baby destructive radicals.  Baseball Commissioner Rob Manfred first announced the All-star game, planned for Atlanta for a couple of years, would be moved, costing Georgia and Atlanta tens of millions of dollars.
“In other words, Georgia is being punished financially for vote-suppressing acts it didn’t take,” wrote award-winning author Wesley J. Smith, who is also chairman of the Discovery Institute’s Center on Human Exceptionalism.  “In other words, … Manfred took this punitive action based on lies, not only in the media, but most blatantly by – and at the urging of – the president of the United States.”
“Specifically, ‘President Unity’ sank into the caustic quicksand of demagoguery by claiming the new law is worse than Jim Crow,” which is simply ludicrous.
The Washington Post’s leftist fact-checker Glenn Kessler gave Biden’s critique of the Georgia reforms “Four Pinocchios,” his lowest rating.
Let’s review some opponents’ claims and the facts.
First, the allegation the new law discourages voting and suppresses votes.  In fact, it actually preserves or expands ballot access in several important ways, such as requiring large precincts with hour or longer wait times to add voting machines and personnel in subsequent elections.  It also increases mandatory days of early weekend voting.  Etc.
Second, the claim it eliminates voting on Sunday to suppress African American votes.  In 2020, only 16 of 159 counties offered early voting on Sundays.  The reform provides the option for early voting on two Sundays for all areas.
Third claim: The bill eliminates drop boxes for absentee voting.  The reforms make drop boxes an official part of Georgia elections; they were unknown before 2020.  So, they will be an official part of elections in all 159 counties and supervised to prevent tampering.
Biden also lied by numerous times claiming the standard provision in Georgia’s law and common to all others that prevents politicking of voters standing in line would prevent voters from getting food and water.  The new law specifically allows for poll workers to provide.
There are more details, but the upshot is the reform law improves access for voters and fairness.  Manfred and MLB leadership ignored the facts and charged ahead with their virtue signaling.  Ironically, they did so right after cutting a deal with communist China to set up a baseball league there, as well as to live-stream MLB games to the country.
The same China that’s committing genocide against the Uighurs in its western provinces.  The one that harvests organs from living Falun Gang practitioners who are prisoners of conscience.  The one that has crushed democracy in Hong Kong and may soon do worse.
Not a peep from Manfred and baseball owners about these awful, continuing and growing abuses.  They saw what happened when a basketball coach criticized China.
What to do?  First, you can be absolutely sure I won’t watch the All-star game or read about it.  I’ve already cast the National Basketball League and National Football League into the outer darkness (completely ignore them and their products) for their craven fealty to wokeness and cancel culture.
And I’m beginning to boycott other Big Business, Big Tech and Big Entertainment that reject and insult America, as are many individuals and groups.  (Go to hell, Twitter!)
I would find it hard to completely ostracize the Dodgers for Dave Roberts’ monstrous mistake.  But he needs to go.  The Dodgers should get someone else.
Ron Knecht has served Nevadans as state controller, a higher education regent, economist, college teacher and legislator.  Contact him at RonKnecht@aol.com. 
Ron Knecht

775-882-2935
775-220-6128
 
www.RonKnecht.net
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Income Disparities in America: A Broader View

3/30/2021

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​In recent policy debates, current income trends and disparities among Americans have been a major concern.  Courtesy of economist John Mauldin and River Financial, a comprehensive set of data and charts is now available to shed new light on the subject.
The most notable point raised by people about income disparities is that, adjusted for inflation, incomes of high earners have increased rapidly over the last half-century while those of middle- and lower-income folks have increased slowly or even stagnated.  Or, the rich get richer and the poor get poorer.
There are two problems with this account.  First, it conveniently focuses on the last half-century and ignores the trend before 1971.  Indeed, the income share of the top one percent of earners relative to that of the bottom 90 percent rose greatly from 1971 to the Great Recession to a level it maintains today.  That is, the total incomes of the top one percent as a group today is nearly 75 percent of the total income of the bottom 90 percent group.
Fifty years ago, however, the top one percent made just over 40 percent of what the bottom 90 percent did.  Moreover, the high point before 1971 for the highest one percent was reached at the end of the Roaring 20s – at the same relative level as today.  The very rich were very damaged by the Great Depression of the 1930s and World War II (WWII).  After the war, their incomes rose somewhat slower than income for “The Rest of Us” until the 1970s.
So, the analyses covering only the last 50 years are not reflective of longer American history.  Thus, they’re not very convincing for claims that policy or the economic system is broke.  That’s not to say the current trend doesn’t indicate problems or legitimate concerns, just that it’s an incomplete and unrepresentative snapshot.
The second problem with this trend account is even more notable.  Namely, the income measures include only income and not the effect of taxes and government transfers (e.g., food stamps and tax credits).
When the incomes series are modified to incorporate these effects of government, the overall distribution of total incomes (i.e, including taxes and transfers) are roughly the same as in 1971, or perhaps slightly more equal.  Beginning in the 1980s, the inequality in the total incomes rose, as it did in the following two decades.  After the Great Recession, however, incomes became more equal.
In sum, the basic claim about the rich and poor is false.
When we don’t adjust for taxes and transfers, the following data and trends remain.
First, wages rose in line with the gross domestic product (GDP) per person after WWII to the early 1970s – a condition we think of as being normal.  However, from 1972 to 2017, productivity gains far outran workers’ compensation.  The phenomenon causing this trend was that capital equipment and new innovations and inventions (technology) began to claim more of firms’ earnings.  And returns to capital and from inventions and innovations accrue to the wealthy and high-income folks.
Also, incomes of Black people relative to White people after WWII rose rapidly until the early 1970s.  From then until now, that gap has been closed at a much slower rate.
From the end of WWII, median incomes of women in the workforce grew slightly slower than the economy until the Great Recession.  Income of men, however, rose with economic growth until the early 1970s.  After that, they flat-lined up to the present day.
Overall, people’s income gains after WWII were shared widely among income classes.  But since the early 1970s, the income gains have accrued much more to higher income classes than to middle and lower classes.
Further, costs of some goods and services, especially housing, have risen much faster than others and the overall measures of inflation.
Monetary inflation and deflation kept prices generally comparable from America’s founding until World War I, the income tax and the Federal Reserve.  Since then, and especially after 1971, inflation has driven price levels ridiculously high.
Finally, U.S. government debt held at reasonable levels, with upward excursions after wars, until the end of the 20th Century.  It has been sky-rocketing since then, especially in recent years.
Ron Knecht has served Nevadans as state controller, a higher education regent, economist, college teacher and legislator.  Contact him at RonKnecht@aol.com.  
Ron Knecht

775-882-2935
775-220-6128
 
www.RonKnecht.net
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Can Someone Earn $1-million in a Year Honestly?

3/23/2021

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​With the Fighting Illini launching March Madness Friday with a blow-out, I was all set to watch Saturday and Sunday as they led the Big 10 dominance through the tournament.  You can take the boy out of the Midwest but you can’t take the Midwest out of the boy.
Of course, they blew the first game Saturday, leading a memorable Big 10 collapse leaving just two of its mighty nine qualifiers standing at the end of Sunday.  It wasn’t much compensation that my other conference, the Pac-12, won its first five games – especially because my grad school alma mater Stanford didn’t even make the party.
What’s a young man to do?
The good news is Sunday afternoon the History Channel featured four parts in six hours of their great 2012 docudrama, “The Men Who Built America.”  These episodes cover the late 19th and early 20th centuries and the entrepreneurs, inventors, investors and power-brokers whose truly exciting stories demonstrate the essence of America and capitalism.
Cornelius Vanderbilt in railroads. Andrew Carnegie in iron and steel. Thomas Edison and George Westinghouse in direct-current electricity. John D. Rockefeller in oil and natural gas. Nikola Tesla and J.P. Morgan in alternating-current electricity. Henry Ford and the auto.
Many remember them as robber barons and ruthless predatory monopolists.  But they were also men of great courage and vision who were the ultimate benefactors of America and the modern world they wrought.
Without them or their equivalents, we and the whole modern world would be much poorer today.  They and their successors made today’s poor live better than monarchs of old and helped open to today’s well-off folks previously unimaginable vistas of knowledge, experience and human flourishing.
Really, Ron?  …  Really.
Of course, their ruthlessness and winner-take-all motif damaged more than benefitted some folks at the time, and thus engendered bitter enemies, opponents and some legitimate criticism.  But it also raised much resentment-based illegitimate criticism and political opposition.  Most notable, quotable and threatening of their political opponents was Democrat William Jennings Bryan.
The southern-Illinois-born prairie populist orator, a leading progressive of his day, a/k/a The Great Commoner, ran for president in 1896, 1900 and 1908, coming closest in 1896.  At the 1896 nominating convention, he made his most famous speech, speaking in favor of free silver and declaring of the eastern moneyed interests, “They shall not nail us to a cross of gold!!!”
But he was also famous for the assertion he made while on the first whistle-stop presidential  campaign tour that, “No man can honestly make $1-million dollars in a year.”  A claim the documentary highlights.   And the most significant point in understanding the men who built America and modern capitalism.
Bryan’s claim completely misunderstands the nature of markets.  He argues essentially there is a labor or similar externally-imposed standard of value that should prevail in commerce; and using that standard, no one could work enough hours in a year to earn anywhere near $1-million.
But an externally imposed earnings standard is not how the world works, nor should it.  To promote maximum aggregate human well-being and fairness in a society, labor and everything else should transact at some mix of the values placed on it by its buyers and sellers.  And that’s what market systems do: find the market price between those two values that maximizes economic output in the society and thus aggregate human wellbeing and fairness.
When an exchange of goods or services takes place, the price is below the buyer’s willingness to pay and above the seller’s willingness to accept.  Otherwise, one side or the other will not make the deal.
The bargaining that takes place in markets determines from the supply and demand for the item being valued what its social value is, and that’s the sale price.  It provides a consumer surplus, the difference between the consumer’s willingness to pay and the price; and a producer surplus, the difference between the seller’s willingness to accept and the price.
A person digging a ditch with a pick may work very hard and produce very little value.  An inventor, entrepreneur, investor, etc. may, on the other hand, produce huge value for others and thereby honestly earn that $1-million a year.
Ron Knecht has served Nevadans as state controller, a higher education regent, economist, college teacher and legislator.  Contact him at RonKnecht@aol.com.  
Ron Knecht

775-882-2935
775-220-6128
 
www.RonKnecht.net
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Presidents’ Day and Our New Chief Executive

3/2/2021

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​Presidents’ Day fell on February 15 this year, and the birthday of our first and greatest chief executive, George Washington, was February 26.  The birthdays of two other great presidents also occurred that month: Abe Lincoln, February 14; and Ronald Reagan, February 6.
So, it seems to me timely to discuss how the preparations of our 46th president, Joe Biden, compares with theirs.  (Personal apology: I started this column two weeks ago but, recovering from knee replacement, I couldn’t finish it until now.)
George Washington was born in 1732 to a Virginia family that made its fortune in land speculation on the frontier.  Washington was the oldest of six children of his parents, and his father had three children by a previous marriage.  His older half-brother Lawrence inherited the estate that eventually became Washington’s Mount Vernon when Lawrence left it to George.
Washington did not receive the formal education of Lawrence at the Appleby Grammar School in England, but he did learn mathematics, trigonometry and land surveying.  He was a talented draftsman and map-maker.  He wrote with “considerable force” and “precision,” albeit “lacking in wit and humor.”  In pursuit of admiration, status and power, Wikipedia reports, he tended to attribute his shortcomings and failures to someone else’s ineffectuality.
Lincoln was born in 1809 to a poor Kentucky family that moved to Indiana and then to Illinois, where people revered him so much they later adopted “Land of Lincoln” as the state motto.  Never having gotten a formal education, the self-taught Lincoln “read the law” and became a well-known lawyer and orator.
Reagan was born in February 1911 in Illinois, to a low-income family.  He graduated from Eureka College.  He worked as a swimming life-guard and radio broadcaster before heading for Hollywood to be an actor, union leader, 33rd governor of California and president. 
Lesson here for President Biden: It’s good to be born on the frontier, but the frontier has always shifted west.  At least it did so until Jay Gatsby, who falsely claimed to be from San Francisco, learned the frontier had shifted back east and moved himself to New York.  So, you being born in Pennsylvania and moving to Delaware is not a problem.
Broadening the notion of frontier to include the emerging commerce of the era, the other three presidents hit the nail on the head: Washington as a surveyor and map-maker when America was being opened.  Ditto, Lincoln’s professions from rail-splitter to lawyer as he matured. And Reagan from actor to politician, two growth industries of the 20th Century.
So, Biden’s lack of elite academic education is not a problem.  He developed a saleable craft, as they all had.
He also learned the essential skills of writing and speaking well.  But while Washington was self-taught in this regard, Lincoln borrowed much from the Bible and law books, and Reagan had legitimate scripts, some he wrote for radio himself; Biden found his voice a less honorable way.  Some of his best written and spoken pieces have definitively been found to be plagiarized.
Washington, of course, had a legendary early military career from soldier to very successful planter and businessman to local politician and leader.  As General of the army of the Continental Congress, he learned military diplomacy with the many generals under him and international diplomacy with our French allies.   Biden, having become a U.S. Senator at age 30 with no experience except lawyering, had none of these advantages.
Lincoln had only a year in the military during the Black Hawk War of 1832.  Then he ran unsuccessfully for the state legislature before winning two years later.  Those were the first of many political campaigns, of which he lost more than he won.  However, that experience, his great success as a farmer and his long years as a revered lawyer gave him a great edge over Biden.
Even Reagan’s work and experience before being elected California governor exceeded Biden’s pre-senatorial preparation. But Biden’s half-century as a senator and scandal fraught eight years as vice president have certainly prepared him for the Presidency.
There are many roads to the presidency.  For the sake of our country, we hope President Biden’s path serves him and us well.
Knecht, MS, JD & PE(CA), has served Nevadans as state controller, a higher education regent, economist, college teacher and legislator.  Contact him at RonKnecht@aol.com.
Ron Knecht

775-882-2935
775-220-6128
 
www.RonKnecht.net
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Just the Facts, Ma’am: Income and Taxes in America

2/9/2021

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​“The rich get richer and the poor get poorer.”  A glib trope a liberal-statist law school classmate used as an obvious and key claim in advanced constitutional law in 1995.  My oral response objection was so loud and immediate the professor admonished me.
But official numbers at that time supported my objection.  And sound theory shows that, in a true market economy, it’s the right result when it happens.
We’ve all heard numerous similar tropes from Democrats, liberals, progressives, the politically correct and populists nearly every day.  These claims are so glib, well known and often generally accepted that the Dems, et al. usually don’t bother to back them with research, data and analysis.  And Republicans, conservatives and even many limited-government empiricists often don’t even bother to contest them.
More: The rich are paying lower taxes than they used to, especially since the Trump tax cuts.
And: The rich aren’t paying their fair share, so we need to increase their taxes so they do.
Etc.
Fortunately, the Internal Revenue Service publishes the actual numbers and facts with which we can determine the validity of these claims each year.  So, let’s explore the latest annual report, released last month and covering tax year 2018.
The poor get poorer?  The Tax Foundation’s (TF) digest of the IRS’s data states: “Tax year 2018 was the first under the Tax Cuts and Jobs Act (TCJA).  The number of returns filed and the amount of income reported grew in 2018 yet average tax rates fell across every income group and total income taxes paid decreased $65 billion.”
So, a tax cut preceded not just increased incomes for the poor and all income classes, but also income for all taxpayers as a group.  Score one for the key supply-side claim our tax rates are so high they damage the overall economy.
What about the really rich?  Per TF: “The share of reported income earned by the top 1 percent of taxpayers fell slightly, to 20.9 percent in 2018 from 21 percent in 2017.”  But remarkably, “Their share of federal income taxes rose by 1.6 percentage points to 40.1 percent.”
Moreover, “Since 2001, the share of federal income taxes paid by the top 1 percent increased from 33.2 percent to a new high of 40.1 percent in 2018.” … In 2001, the top 50 percent of all taxpayers paid 97.1 percent of all individual income taxes, while the bottom 50 percent paid the remaining 2.9 percent.”
That is, the long-term trend shows the income tax has become greatly more progressive.  And that trend continued with the Trump tax cuts.
But wait, there’s more!  “The top 1 percent paid a greater share of the individual income taxes (40.1 percent) than the bottom 90 percent combined (28.6 percent).”  And, “The top 1 percent of taxpayers paid a 25.4 percent average individual income tax rate, which is more than seven times higher than the taxpayers in the bottom 50 percent (3.4 percent).”
So much for the claim the super-rich don’t pay their share.
Moreover, high-income taxpayers paid the majority of federal income taxes, “In 2018, the bottom 50 percent of taxpayers (those with [Adjusted Gross Income] below $43,614) earned 11.6 percent of total AGI.  This group of taxpayers paid $45.1 billion in taxes, or roughly 3 percent of all federal individual income taxes in 2018.”
“In contrast, the top 1 percent of all taxpayers (taxpayers with AGI of $540,009 and above) …  earned 20.9 percent of all AGI and paid 40.1 percent of all federal income taxes.”
No one knows the exact ratios that are distributionally fair, but the trends and current rates support the following:
1) high overall tax rates and public spending are greatly responsible for our slow economic growth in the 21st century (as discussed at length in my previous columns and my Controller’s Annual Reports);
2)  the poor as a group are getting richer, not poorer;
3) the share of income taxes paid by the rich has increased greatly in the 21st century and continues to do so; and
4) the ratio of the rich incomes taken by federal income taxes is much higher than the puny fraction taken from the poor and middle-income folks.
Ron Knecht has served Nevadans as state controller, a higher education regent, economist, college teacher and legislator.  Contact him at RonKnecht@aol.com. 
Ron Knecht

775-882-2935
775-220-6128
 
www.RonKnecht.net
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LGBTQ and All That: Conflicting Rights

2/2/2021

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​In my last column, I discussed the problem of transgendered boys and men competing in athletic competitions established for girls and women.  I explored the subject from the perspective of outstanding female athletes who have no chance of winning against previously male competitors who were nowhere near the top of the men’s standings in their events.
As one lady said, “It’s just not fair.”
That seems to be the overwhelming consensus on the subject among folks I know.  But while I think that’s the essence of the matter, the subject deserves a broader and deeper treatment.
One appropriate context is to consider transgender issues in the context of lesbian, gay, bisexual, transgender and queer issues – the LGBTQ complex so widely discussed but not addressed in necessary disaggregation and detail.
The first point is: transgender issues are characteristically different from the other four.  LGBQ matters involve folks’ preferences and actions regarding persons of the same or opposite gender.  Transgender issues deal with how some persons identify themselves and their desires to assume a gender other than the biological identity with which they were born.
Thus, LGBQ persons typically are generally happy with their own sexual or gender identity and they prefer the intimate company and practices of their own kind or of a mix of their own sex and the opposite sex.  This is generally contrary to conventional sexual mores and religious or ethical teaching.
Social pressure against LGBQ practices still today in many societies and historically in many others, including our own, often extended to legal prohibition or other sanction.  American social practice and law, as well as that in most other western societies, has been greatly liberalized in recent decades.  Now, LGBQ lifestyles are celebrated, not discouraged, as part of valuing human diversity.
So, we have LGBQ holidays, parades, nightclubs, bars, literature, etc.  Many more traditional people continue to resist this change, especially the supportive and celebratory aspects of it, but mainly tolerate it without objection.  The issue is the distinction between, first, accepting and, second, supporting and even celebrating minority choices.
Law in this area has generally focused on requiring tolerance, but not mandatory active acceptance or celebration of minority practices.  And make no mistake, the LGBQ community is decidedly a minority, varying from three to ten percent of the population, depending on age and other factors.  The sticking point arises when LGBQ people seek public support, celebration or accommodation, a burden on straights beyond mere passive acceptance and tolerance.
The apparent logic is: There’s little burden on folks who oppose or only passively tolerate LGBQ practices when those practices are confined to the minority’s private life and do not intrude on the lives of the majority.  And there’s significant benefit to the minority of allowing them to do their thing.  Hence, the social cost-benefit analysis favors toleration and passive acceptance.
But requiring participation, active accommodation or celebration reverses the C-B analysis so that the majority suffer more burden than the benefit then accruing to the minority.  This is because there are so many more people in the majority and the feelings of many of them are as strongly held as those of many LGBQ supporters.
Also, each side has strong claims it has basic rights at stake:  LGBQ persons to their practices, and straights to a world that doesn’t continuously assault majority mores and cause conflict. Transgender issues confront an even bigger deficit in terms of minority numbers and sensibilities versus majority numbers.  About 0.03 percent, or three in ten-thousand people have significant transgender tendencies.  So, the ratio is about 9997:3.
But transgender issues aren’t only characteristically different from LGBQ issues.  Some transgender desires, such as sharing locker and bathroom space or competing in athletic competitions, directly burden straights, as shown in considering transgender men in female athletics.
Even after full biological change to female, including surgery and hormones, persons born as men still have significant advantages in size, bone and muscle mass, strength, etc.  As one girl said, “That unfairness doesn’t go away because of what someone believes about their gender identity.”
LGBQ issues lend themselves to mutual accommodation.  In the transgender conflict of basic rights, there’s very little room to live and let live.
Ron Knecht, MS, JD & PE(CA), has served Nevadans as state controller, a higher education regent, economist, college teacher and legislator.  Contract him at RonKnecht@aol.com . 
Ron Knecht

775-882-2935
775-220-6128
 
www.RonKnecht.net
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