Friday, January 23, 2009

The O Make 2

After reading Ryan's comment, I thought I need to table my views specifically to the points the Obama administration has given so far. They are as below:
  1. Doubling the production of alternative energy in the next three years.
    • This is the best idea of all, yet the most overhyped and undercalculated. Example, Spain. Their green industry is mostly zombiefied right now by both cheap oil and lack of credit. Hence, it suffice to say that it needs to be a national effort rather than a carrot and stick corporate effort. Still, even as a national program, this is a better way of giving unemployment benefits to the masses out there.
  2. Modernizing more than 75% of federal buildings and improve the energy efficiency of two million American homes, saving consumers and taxpayers billions on our energy bills.
    • Similar to the above. The key point is the long term cost savings, but generally, I fear myopic activism to push where technology cannot keep up with. In my view, green tech should solely be onesthat has a complete recycle of byproduct. This technology is not current right now, of course, but well, if you don't strive for it, you never get there.
  3. Making the immediate investments necessary to ensure that within five years, all of America’s medical records are computerized.
    • Actually, I kind of like this idea, if it is added to the fact that it is interlinked nationwide. However, it will be like having a national identity card, isn't it? For one who cannot live without my Singapore identity card, I think a national identity card is a must actually, for personal and national security. Of course, there are many arguments against it.
  4. Equipping tens of thousands of schools, community colleges, and public universities with 21st century classrooms, labs, and libraries.
    • I like the thought, but I think this will open up big financial loopholes like points 1 and 2. Let's not forget, the amount of activism and pampering in USA has made it easy for any device to be allowed by "enough complaints". One such rub is my constant advocate against gun ownership. At least not in schools. Yet, arguments that they feel their child is safer with a weapon is not unheard. Really? It does make me, a foreign student before and a customer of US education feel really threatened about my safety. People who are out to kill will kill, carrying a weapon doesn't reduce the chance of getting hit by one. Hunting is another category though.
  5. Expanding broadband across America, so that a small business in a rural town can connect and compete with their counterparts anywhere in the world.
    • Right, I do hope to get my email messages when I'm at the top of the Rockies. The cost of delivering broadband to such an entity would be equivalently higher as in delivering supplies to such areas by foot. Of course, it does add a competitive edge, but the long term cost issue should not be underestimated. Clearly, if green tech is mass produced with low cost, it can be done. Still, cheap green tech...
  6. Investing in the science, research, and technology that will lead to new medical breakthroughs, new discoveries, and entire new industries.
    • This is too broad, but generally as a scientific person, I like it. Still, letting the taxpayer undertake the cost of research might not be a good idea. The dislocation of funding will occur as a fact of life. How is the tuition fees I paid spent? Can I have a say to it? It's similar, be it invested by the government or the corporate. It's unfortunately the lack of funding that forces people to be smart with their money. I think that is probably what I fear Obama most as much as with accolade for his call for responsibility. It is easy to forget responsibility when you have power though.
I would prefer to think of most of these ideas as building infrastructure. If you have good tech everywhere that is maintained and subsidized by taxpayer money like the roads and government buildings, there are more funds for everyone to allocate to whatever they wish. Of course, this is idealistic, in my opinion is more efficient in regulating wealth within society than pure cuts and subsidies.

Assume everyone with any amount of money, taxed roughly in similar proportions. Now, hopefully this money goes to building the infrastructure as said, which without assumption always fails. That should bring average cost of living down, like shorter times at the traffic, shorter times running endless errands and cheaper public transport. Of course, cheaper trips to golf courses and cruises are less likely, but the cost savings by companies may spur reductions in premiums paid for services rendered too. Specifics vary.

While the savings as per wage tier differs and concentrates mainly on the middle tier who will use more daily functions of the infrastructure more, such as travel time. This goes to populist agendas of keeping the bulk of the population happy. Next, keeping the infrastructure up to date makes it easier to implement broad scale changes when the need arises. Of course, the list goes on, which is why I'm pro build-infra. Constant vigilance and responsibility is what keeps a society healthy, not bandaid fixes. Well, at least that is what I think of the current situation right now.

Oh, and I read about
Charles Grassley's note to Microsoft. I understand some of his points but either way, it is the same for Microsoft, if his advice does not actually make things worse for Microsoft. Naturally, it saves Microsoft more money now to axe foreigners, but I'm sure they did their fair share of homework on the labor issue. I read it as an obvious systematic persecution of foreigners, and it is never good for business. Frankly, I felt Grassley is robbing foreigners of a fair trade of labor. Foreigners pay taxes to USA's unemployment benefits too. Minus 50 respect points.

On another more lively note, Singapore's stimulus plan is pretty interesting. I think it actually works well fiscally and will be cyclic on the budget. It is also not dependent on emergency fundings. Then again, that will need a full reserve. Now, Bernanke and Paulson look more and more like war criminals.

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