Monthly Archives: March 2010

He’s kidding, right?

Did you see what McCain said today?

Democrats shouldn’t expect much cooperation from Republicans the rest of this year, Sen. John McCain (R-Ariz.) warned Monday.

“There will be no cooperation for the rest of the year,” McCain said during an interview Monday on an Arizona radio affiliate. “They have poisoned the well in what they’ve done and how they’ve done it.”

Can anyone else think of any bipartisanship or cooperation the Republicans have shown in this Congress?

Anyone?

Bueller?

How will VT’s next Gov handle Insurance Exchanges?

Ezra Klein is banging out a great series of article about the new health care bill and how it works. One of them, about insurance exchanges, talks about a piece that will be available to be crafted by states as they see fit. He sees it as the most important feature of the bill.

http://voices.washingtonpost.c…

The bill gives states the option of setting up an exchange for individuals or small business, and allows partnering with other states. In 2017, states can decide to open the exchanges to larger employers.

The exchanges provide a market for competition to take place, and where regulation can be applied. Quality ratings and enrollee satisfaction will be available on each plan for comparison. Klein says, “A state with an ambitious exchange administrator could really do a lot with this provision.”

There are also concerns outlined about the successful implementation of the exchanges. In fact, Klein feels this is a crucial point in this process, going as far as saying that, “success of the exchanges is the difference between health-care expansion and health-care reform”

So now that this is on its way to an Obama signing ceremony, I wonder how our candidates for governor plan to move forward with this component of health care reform?

Exposing the “free market” fraud

I tried to post this as a comment on Emerson Lynn’s column about Burton, and got the message “We cannot accept this” when I tried to post it!

The cornerstone of free market theory is that “When no one has market power, free markets are the most efficient way to allocate goods and services.”

China has never been free market! A Chinese elite manipulates any market they have access to, for Chinese gain! That’s been obvious for over half a century. For instance, the Chinese government has manipulated the world market for rare earth metals critical in electronics, and in electrical generation, so that China controls 90% of supply. Now, they banned export of those metals, to force manufacturing away from the USA, to China.  

That’s not free market!!!!!! You bait and switch to defraud your own country!

The real problem is that you,  Bush & Co. have 5 years less math education on average than do Chinese in comparable positions, and so you don’t even understand the game! The Chinese elite has used you help them manipulate currency, commodities and working conditions to their advantage, leaving America deep in debt to China!

Your “free market” PR sounds great until I remember the photo ops Bush kindly put on whitehouse.gov, which can be summed up “house servant to a foreign king.”

When I stop to think that this doesn’t follow Republican or Democratic principles, that leads me to the realization that Bush never believed in free market principles either, and that you “free market” people knew it all along.

Next realization is that you have adopted the same relationship to China that Bush has had with the family Saud! You offer yourselves as house servants to foreigners, while we become the field slaves!

You have no wealth building skills to offer! You can only imitate your Chinese masters and demand that we pollute more, earn less, and give up our security!!!!!!

So with your help, we are gaining the lead in the race to the bottom, nosing ahead of China, and miles ahead of Austria.

Meanwhile, Austria concentrates on keeping Austrians educated, healthy, well rested, employed and prosperous, and doesn’t hesitate to offer companies incentives to keep people working.

To Improve Competitiveness of Rural Businesses, Linking Farmers to the Private Sector

Crossposted from the Worldwatch Institute’s Nourishing the Planet.

Danielle Nierenberg (left) with Rob Munro, Mark Wood, and Reuben Banda from USAID PROFIT in Lusaka, Zambia. (Photo by Bernard Pollack)The U.S. Agency for International Development’s Production, Finance, and Technology (PROFIT) program in Lusaka, Zambia, is different from other development projects, according to Rob Munro, the program’s senior market development advisor. This is because PROFIT has “real clients” in the private sector who maintain relationships with smallholder farmers.

By working with these partners, PROFIT isn’t distorting the market “by throwing money at it” or giving farmers subsidies for inputs, such as fertilizer. Instead, it is working with farmers, the private sector, and donors to improve the competitiveness of rural businesses by linking large agribusiness firms to farmers. It’s helping to improve linkages within industries that large numbers of small and medium-sized enterprises participate in, such as cotton, livestock, and non-timber forest products like honey.

Specifically, PROFIT helps communities select and train agricultural agents who work with agribusiness to provide inputs to farmers in rural areas-places where agribusiness firms had been reluctant to go because they didn’t think there was a big enough market. The agents are essentially entrepreneurs who provide goods and services that the communities didn’t have access to. In addition to selling things like hybrid maize or fertilizer, the agents can also provide ripping services to farmers practicing conservation farming methods, as well as herbicide spraying and veterinary services.

The “key” to the program’s success, says Munro, is that the agent is a “community man” selected by the communities themselves, not by agribusiness firms. The farmers trust the agent not to run off with their money and to deliver the goods and services they’ve purchased.

Unlike traditional development projects that “inundate” communities with trainers, PROFIT minimizes the number of USAID staff involved locally, helping to ensure that the project isn’t viewed as traditional “aid,” which can create dependency. Unlike the AGRA-supported CNFA, which relies extensively on its own staff to train agro-dealers, 80 percent of the trainings for agents are not provided by PROFIT, but by firms that are training agents how to use their products.

PROFIT’s model means that the program doesn’t work “with the poorest of the poor,” but with farmers who have the ability to scale up, says PROFIT chief of party Mark Wood. If you start with the very poorest, Wood says, “it’s like trying to start a car without an engine.” But by working with the 200,000 farmers in Zambia who have the means to collaborate with businesses, PROFIT is helping to create opportunities for thousands of poorer farmers in the future.

Stay tuned this week for more about PROFIT and Mobile Technology’s work to help small and medium-sized enterprises and farmers use mobile phone technology for e-banking services and to access market information.

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Bernie Sanders and Ambassador Friis Petersen of Denmark in Montpelier

(I wanted to let the Burton post “soak” a bit before putting this on the front page… – promoted by mataliandy)

The following is a pseudo liveblog from last night’s public meeting in Montpelier, featuring Bernie Sanders and Friis Petersen, the US Ambassador from Denmark, to discuss the difference in health care and education policy in our two countries.  

EVERYTHING below is paraphrased. I tried to capture the gist of what was said, but I can’t type as quickly as humans speak (especially Bernie). Any inaccuracies or misspellings are mine. Feel free to correct.

US Senator Bernie Sanders and Friis Petersen, Denmark’s Ambassador to the United States, Sunday, March 21, 2010

Introduction, Bernie Sanders:

I get a little bit tired of hearing some of my colleagues in Congress and people in the media dismiss the European model and Scandinavian model, because, you know, we’ve solved all social problems … [much laughter]

We were driving in from Burlington earlier and I asked the Ambassador how much vacation time the average Dane has. Some people here have 0 vacation in the us, and many, if they’re lucky, get 2 weeks after a few months and maybe 3 weeks or more if they hang onto the same job for a number of years.

It is 6 weeks for ALL workers in Denmark. [gasps in audience – literally]

Now is not the time for us to be arrogant. It’s time to open our eyes and ears.

One of the issues that bothers me – we have the highest rate of childhood poverty of almost every nation on earth. Not coincidentally, we also he have the most people in jail. An embarrassingly high percentage of our children are dropping out of high school. College costs are out of control at 40-, 50-, 100-thousand a year. We live in a country where people feel lucky to have a job that makes them work 50 – 60 hrs a week.

[In Denmark] They look at the world a little differently than we do. They are a country that invests in their children. Imagine what it would mean if you knew your kids could go to college. If you knew that your out of pocket for health care wouldn’t bankrupt you.

Recently Mitch McConnell, when talking about health care said “our goal is to make sure we don’t do what Europe did.”

[Introduces Ambassador Petersen – remarks and Q&A below the jump]

Ambassador Friis Petersen:

We Danes are very proud that we are one of the countries in the world with the longest unbroken diplomatic ties with the US.

We call it activist foreign policy – through cold war the policy was “don’t rock the boat” but since the end of the cold war, we have been very close in daring to do things with the US, when others won’t.

We cherish human rights, democracy, rule of law – we try to spearhead those kinds of policies.  We do not do just the hard parts (like military – such as in Afghanistan). That’s been a big priority for me – to be w/the administration on these issues. Another issue, energy and climate. We didn’t get to where we hoped in the Copenhagen accord, but we are happy with the help from Obama that moved the process forward.

How our welfare society is organized:

Dealing with health education, welfare, and social security. The things that you know: we have few natural resources (a little oil and gas in the North Sea, but nothing more, just our heads and hands), so we have to organize ourselves very cleverly to have a high standard of living.

The private sector and the public sector: when we try to look at our private sector, we’ve been able to grow some companies to be very large. We have one rich man in Denmark [laughter]…

We have Vestas wind turbine producer – the largest in the world, some of the largest most successful biofuel companies that create the enzymes that convert biomass (including switchgrass in 2010 and 2011). These successes were created by government policies. We have a lot of medical and pharma companies that combine their production w/corporate social responsibility. When it comes to the business environment, we are ranked as number 1 in the world. You can’t do enough to ensure that your companies are healthful, strong, and sustainable companies.

When it comes to education and health – we have decided to have a very public run, govt financed free for all system. If you want to study to become a doctor, lawyer, etc. in college, you do it because you are interested and because you have the grades – not because you want to make the money.  

People do what they have a strong interest in doing – not because they will make the most money at it. It’s not because we don’t want to have strong business, but because it gives us flexibility and freedom. Our freedom is maximized by offering education free for everyone if they have the desire to work to get the grades that will get them into the program.

When it comes to health, we have universal coverage. Who could not be part of universal coverage? Who would you exclude from health? How would you make the decision? So we had a competition in how to provide the BEST govt run health system.

US pays 19% of GDP to health care. We pay 9%. When it comes to those comparisons of health output – we do a little better, but have half the cost.

No Dane would know what malpractice litigation is – we simply don’t have that. No Dane would know what pre-existing conditions are – we don’t have that. It gives us an increased freedom – enables us to live freely without worrying about health care.

We are not magicians – we just let the private sector do what they do best: create global companies, but at the same time admitting that there are things done best by the public sector. Schools, health care, etc. By that division between private sector and public sector, we get the most freedom. Security that our society needs and wants.

We probably have some of the highest tax rates in the world (50% or more), but that social contract is an attractive contract. We like the services govt provides to us, so we really don’t have a discussion about cutting taxes. It’s not likely to be a factor in next elections. The issues we will see are things like: can our education become even better? We want smarter youngsters securing our long term viability in competition with other countries….

Bernie:

Q: Please explain average life of a Dane. Say I’m a young father. We have a baby. In this country, the mom gets 12 weeks off without pay, if she can afford it. In Denmark how much time do you get off?

A: We had 6 months paid leave when I got married, now it’s 1 year.

Q: Finding good quality child care is enormously difficult in this country.

A: We pay a very high price for child care. There is less expensive care, but my family pays $600/month. We have such a high price, because we want people to consider staying home with their young children, which is why we also provide paid leave.

(Q: to the audience, asking how much does it cost for child care around here? A woman from Montpelier said it’s $45/day which works out to $900/mo).

Q:I lived in Denmark many years ago and never saw anyone complain about health care. They complained about taxes, just because they have to complain about something, but said they would NEVER switch to our system.  Real Q: does Denmark provide free health care and education to immigrants?

A: Yes. It’s one of the biggest issues, politically. You have people who come in and live up to the social contract, but others who don’t. It’s a big political problem. They come and enjoy the benefits, but don’t want to partake of society. There has been some change in immigration policy – requiring that you do certain things to become fully integrated into the society to get access to many of the benefits.

We used to have little crime. We have 68 citizens in prison per 100,000, the US has 10 times as much. The cost of this in the US must is very high.

Q: What did it take to get the nation to accept this kind of social policy, this kind of allocation of $$ resources?

A: It’s a historical evolution from the emergence out of the second world war. We were in VERY bad shape – many would not understand how troubled it was all across Europe at the time. Out of that time came great a production revolution and associated affluence. Out of that grew a prominent role for government to have a dual-component society that would support companies while also providing the services that support society. We didn’t finance it – we accrued a huge debt until the 1980s, when we changed fiscal policy to reduce our debt through high taxes. We had the social policies in place first.

We also had a philosophy to build a strong, vibrant society that had public-private partnership. We have a slower GDP growth rate per year than the US. We want to increase it with more productivity w/more advanced technologies and better education to be more competitive.

Bernie: When we say “conservative” we mean “would privatize all social programs.”  When you say conservative, do you mean the same thing?

Petersen: Well, when people complained about issues (like waiting times of a few weeks for things like knee surgery) we liberalized the system to allow a private health care choice. Conservatives support a socialized system. Our health secretary came to see where US health system (which is the best and worst in the world) can provide ways for us to be better – looking for things like technologies we can adopt. (audience comment: don’t do what we do!)

Q: What is the general tax rate? Isn’t Denmark the country where people bike everyplace, saving resources and being healthier?

A: 35% of transit in Copenhagen is by bike. It’s healthy, but also practical and much smarter than sitting in queue’s being in smog, frustrated, wasting fuel. It’s easier.

Tax rates in the %0% range. We have energy taxes. $9 – 10/gal for gasoline. We’ve decoupled growth from energy consumption. We saved a lot of dollars and increased economic competitiveness that way. By incentivizing people to save energy, and increasing taxes on carbon based energy, we’ve given people incentive to use alternatives – growing those industries, making the success of companies like Vesta possible. We can then reduce income taxes by the amount gathered in carbon taxes. Waste costs extra.

Q: Tell us about your retirement system?

A: Universal people’s pension system for everyone. If you have a little wealth, you get a slight reduction. My Dad retired in 1991, and still enjoys it, and saves from his pension.

Q: How much in American dollars:

A: My Dad makes $1200/mo after taxes (but he doesn’t have to pay for health care, medications, etc.)

Q: Fixed budget for health care?

A: Yes. We keep our total expenditures at 9% by having a system in which the hospitals decide what they can afford in services for a given patient. If it was health suppliers or politics making the decisions, then, like here, the providers would try to provide the most possible care, while health insurers would try to deny the most.  It’s an unhealthy system.

An example of the difference: with my children, because their births were diagnosed as normal, they were born in the hospital without a doctor or midwife present in the room, though a doctor is on-call the whole time, just in case. In the US, you have multiple nurses, doctors, etc. in the room constantly, at an extraordinary cost, even for a normal birth. If you use the $$ for the things that don’t need the $$, like a normal healthy birth, then you are depriving yourself of the bang for the buck in the places where it’s really needed, like cancer treatment.

We know where the money is needed to get the best outcomes, so that’s where we use it.

You might think of it as a cruel system, where doctors decide things for you, but in our system everyone gets the same care as the Prime Minister. We don’t have people getting worse care just because they have less money.

We have highest income and wealth equality in the world. We could not live with inequality similar to other countries. We want equality as a political goal. It creates what is better than the private solutions.  We want the best result – that’s the best of democracy.

Q: I had the privilege of experiencing your system. I went to the hospital at midnight on a Sunday. It cost me $7, including the medicine. How do you ensure quality at every step?

A: Advocating transparency. Hospitals publish treatment records – how well does this hospital work? You have the free choice to go to the hospital with the best treatment. Our standards are high and uniform, so there’s little need to go one place vs the other. But we’ve added private hospitals and private insurance, you pay extra so you don’t have to wait 3 weeks.

The doctors who work in govt hospitals go to the private hospitals after they do their hours in the govt hospitals and make extra $$. We like that, we’re not socialists.

Q: People who want to start a business or are artists, don’t belong to a large pool, and can’t really get insurance. Our system stifles innovation.

A: How do you deal with health care for them? It’s free for everyone. There’s no employer needed to get health care. (Bernie: 25% of people stay on their jobs instead of starting new businesses, so they can get health care. One man joined military when quite old for HC benefits for his wife with cancer.).

Q: You were diplomatic about Copenhagen meeting. Q is for Bernie: I’m sure Denmark doesn’t have the problems we have, global warming will destroy us all, regardless of health care.

A: The dynamic is that I sit on both energy and env. The ranking member of env. committee (Inhofe) does not believe in global warming. Thinks it’s a hoax, not interested in moving forward. Sen Kerry working hard to get 60 votes, which means reaching out to some very, very conservative people. It means we won’t end up with something as strong as it needs to be.  We ARE beginning to make some progress in energy efficiency and sustainable energy. We got the most $$ in history of the US to go toward efficiency and sustainable technology.

A: Petersen: What do people in Denmark feel about this. We’ve had more people visit Greenland to witness global warming. I saw this last week, danish produced film, made in Greenland by danish film director “One Degree Matters” – global warming is real

Danes thend to believe in science.

Q: I worked in Copenhagedn in the 1970s. I was paid more than Danish artists because I was a foreigneer. Are there subsidies for the arts in Denmark now?

A: We attract special quality talent with subsidies. We grant subsidies to as many foreigners as possible to come participate – we benefit from the creativity of those people. We want to make sure we get the best of everything.

Q: Web sites where we can keep up with European and scandanavian countries re: health care over there?

A: It’s easier than before to be informed. If you search the Denmark dept of health, and the  embassy of denmark in DC, you will find links. Danish pharma companies are used to dealing with a very difficult market (misers) that gives them a competitive advantage. Research and innovation is happening from pooling interests – could be even more streamlined and focuses.

Q: Thanks for letting mothers stay with their young children.  I attented discussion w/Dr. Hsaio who discussed the complex system in Hong Kong, Taiwan, etc.. Which is better?

A: I can’t immediately come up with studies (off the top of my head). If you compare the US v Denmark or many European systems, you use almost double the amount of GDP but only get the same health care outcomes (or worse). Life expectancy, infant mortality, deisease outcomes.

Bernie: No debate that ours is the most costly and inefficient system in the world. Exactly which system is the most efficient is not answered.

Q: Danes don’t know what malpractice is, how does the system handle injuries?

A: We don’t have malpractice litigation. We try to treat malpractice with great seriousness, by trying to prevent it via procedures – learn from it when it does happen, and try to provide some compensation to the patients.

Bernie: In this country, if you go into surgery and there’s a mistake, you have to pay 10s of thousands of dollars to be made whole. That’s not the case in Senmark.

Q: Our primary care physicians are least well compensated and specialists most well compensated, which drives students into specialties, leading to shortage of primary care physicians.

A: Doctor’s union negotiates with the finance ministry to deal with the compensation. It’s comparable to lawyer or other professional. it’s not US salaries.

Bernie: 10s of millions of people can’t get a doctor. So they walk into emergency room to get treated for a cold. In addition, since doctors emerge from school $100s of thousands if dollars in debt, they can’t afford to be primary care.  We are going to put 12.5 billion into community health centers. 7500 new centers in US, to get health care, dental care, low cost drugs, and increase 17k new doctors, dentists, and nurse practitioners in the next 5 years alone.

Q: Did Denmark ever suffer with public sector people mishandling public resources that makes people worry about large amounts being mishandled? Was there ever such a loss of trust in government? I don’t know if you have lobbyists…

A: Even though I am a public employee, I try to stay in touch with the reality of the economy for the private sector. The challenges in a tough competitive environment, I think what we do in Scandinavia can be done in other places. We don’t pretend that we can give the kind of standardized good health sector policies that we use in Denmark. There are income inequalities that make it harder. Second if you run a big bureaucracy, it’s difficult to make big bureaucracies be effective and productive and stay in tune to the current reality. Maybe at the state level is more comparable.

Bernie: there is a crisis in confidence. Does the average Dane feel better about govt than we do in the US? Yes. If we were 60 times bigger, we might have a harder time proving that we are running the system well.

Q: Mental health care in Denmark. Our system is absolutely broken. Psychiatric hospitals excluded from Medicare reimbursement. 1/2 people w/persistent illness never get care and end up in correctional system.

A: Not an expert on mental health care. But we tried to address the fact that modern life creates mental diseases, and it’s an area where we no longer make the distinction.

Q: Cynical that ins. cos, medical equipment manufacturers and other lobbyists have written our health care policy.

A: Our parliament is pretty independent. We have lobbyists, but our legislature is very independent of them.

Bernie follow-up Q: How does the campaign system work in Denmark?

A: There’s very little financing from private sources in our campaigns. Our parties collect a small membership fee ($100/yr). Companies pay little to the parties. The numbers of dollars spend on campaigns in the US are very, very impressive and staggering.

(Bernie: 5 billion in 10 years wad donated in US just to get deregulation in financial system.)

Q: What do you see for cost happening in Denmark with aging population?

A: We have the same problem as other countries in terms of demographics. Big block of retirees needing care, newer generations are smaller. We’ve done a number of things – make healthy lifestyle important. People smoking less and living healthier, which is counteracting the trend of cost increase from more elderly. We ask older people to stay in the workforce longer – also seeking shorter college programs to get people into the workforce earlier.

Q: Private sector relationship between capital and labor. In US it’s “hands off” invisible hand systen. But we continue to reduce the taxes on most wealthy while our capital flies out of the country seeking lower cost markets. Do you keep your capital in the country?

A: Biggest MS facility outside US is in Denmark. CEO said for MS to be the biggest possible, it would go Danish. Tax rate is something, but the overall assessment of the business environment is what matters to companies when they look at Denmark.

Bernie: Their wages are high, taxes are high (50%), and they have 60% unionization, and they’re one of the best environments for business.

Q: How do your companies become successful with high taxes, and high wages?

A: You have many high salary companies in the US, so it’s not that dependent where you locate your production. The salary isn’t what determines success. It’s the whole company, and its whole process and planning that matters. Advanced consumers and research are important.

Q; (for Bernie: Use reconciliation to force taxes of 95% on insurers, oil cos., etc.)

For the Ambassador: Have you ever seen obstruction in any democracy on the level that’s taken place in Washington in the last year?

A: Bernie: The democratic leadership has started to catch on. You’ll see movement toward reconsideration of the filibuster and hold mechanisms. House will pass its bill today. Next week it comes to Senate. Working hard to get second next budget that will continue the process using reconciliation.

Petersen: If you look at US political scene with very limited time span, you get a bleak assessment. I believe it should be judged on long term performance. The constitution is a state of the art constitution. If you look from longer perspective, it has accomplished more than anyone else, and I would therefore be positive about the US. But it seems to be t a crossroad because the world has changed. Globalization has affected us all. Next I will be ambassador to China and we all have to relate to this new flatter world where legislatures have to try to adjust to the project of the nation. We need to be attentive to broader solutions and cooperation. Your 1st 300 years you’ve done quote well.

Q: Energy policies. We have a leaking nuclear power plant, washing waste into the ground. In all likelihood it will close soon. People are trying to pass alt energy legislation. Farmers in the northern part of state want to start wind on their own farms, but there’s local opposition. Do you have local or govt opposition to such in your country? If so, how did you “stomp it out”?

A: We have no opposition on this. We get 24% of our electricity from wind, which has been a major part of our energy infrastructure for the last 30 years. We decoupled our energy from foreign countries and went from 99% dependence on foreign energy in 1970s to a net exporter today. Energy is our most strategic industry.

The US is very creative, it created the NIMBY phenomenon. You apparently want to discuss everything, but we’re practical people. We thought: if we can harvest the wind, we should harvest it.

We have no nuclear, but the Sweden put their nuclear plant as far from their own major cities as possible – right across from us.

\Bernie: We ignore their successes at our own preil.

Health Care Reform tactics worked, now we need a STRATEGY!

Health care reform opponents have a strategy:  

Let a reform plan pass, but make sure that there is no effective cost containment.  Let the Sickness for Profit system continue to rape and pillage, and reinvest some of the profits in a marketing program to demonize all real reform efforts.  

It’s the strategy that brought us the Medicare prescription drug legislation, which is projected to go bankrupt. It’s the strategy that was used to cut taxes going into war, and disguise the war deficits, passing war costs on to future generations.

In short, their strategy is, and has been, to get Americans to finance America’s effort to win the race to the bottom, and to provide others with the knowledge to keep us there!

What’s our strategy going to be????

For at least three thousand years, it’s been known that a society that values profit above all will consume itself from the inside, until nothing is left but a hollow shell, which collapses and dies.  

We have been in an uphill fight for a generation, because we have allowed avarice to be trumpeted as a basic American value, when history shows that avarice is self destructive.

America was founded to give Americans a bigger voice in their government!  It’s about liberty and justice for all, not about profits for a favored few!

Breaking: House Passes Healthcare Reform

No one loves the Healthcare Insurance Reform Bill. At best it ameliorates the worst abuses of the private insurance companies and makes sure 95% of Americans would be covered with or without subsidies. At worst it’s a huge dump of public funds to private business with a mandate that everyone must buy coverage.

But there it is. The bill (I think it was HR3590) passed by a vote of 219- 212 at 10:48 p.m. March 21, the first full day of Spring.

The Truth About Burton

(Continuing site policy of promoting diaries from officeholders and candidates – promoted by GMD)

Emerson Lynn wrote an wrote an editorial about Burton Snowboards "leaving" Vermont that highlights the misconceptions I hear from people around the state.  

Burton is not leaving. They are consolidating their manufacturing in Austria and China, a move that will cost us 43 jobs. Jon Margolis wrote an excellent analysis that is available at Vermont News Guy.  

Burton will keep their corporate headquarters and their research and development operations in Vermont. They are going to expand their research and development operations to take advantage of the research and development tax credits I have championed.

Doug Hoffer wrote a response to Mr. Lynn I want to share with you that makes it clear that Vermont policies are not the reason Burton made their decision.  

Sincerely,  

Susan

Doug’s letter is below the fold.    

Mr. Lynn  

If you consider your piece grounded in facts then I'm glad you're not a legislator.  

First, your singular focus on Vermont has blinded you to events in other states.  For example, from 1998 to 2007 (latest data available), there were 3,171 VT jobs lost to offshoring (U.S. Dept. of Labor, Trade Adjustment Assistance).  During that same period, New Hampshire – that wonderful tax-free haven – lost 8,309 jobs to offshoring.

Figures for other New England states:

CT -11,861

ME -13,481

MA -30,027

so I guess it's not just Vermont, eh?

Second, you said "utility costs matter."

All costs matter, but some costs are more equal than others. According to the 2008 Annual Survey of Manufactures (Census), electricity represents 1.7% of revenues for wood product manufacturers.

Thus, if we could wave a wand and reduce that cost by 20%, the savings would be the equivalent of one third of one percent of revenues.    

However, that's not an issue for Burton because electricity is actually more expensive in Austria than it is in the U.S. (U.S. Dept. of Energy, EIA).  

Third, you said "tax policies matter."  Of course they do.  But here again, you've made an assumption not supported by any facts.  

For some businesses, federal taxes matter, but state business taxes are quite modest. Of course, we don't know what Burton pays (convenient for you I suppose), but we do know that state corporate income taxes have declined significantly as a percentage of GSP in every state in America (see ITEP, http://www.ctj.org/pdf/corp020…  

BTW – For the person who posted the statutory top marginal rates for the U.S. and Austria: It is NOT the statutory rates that matter; it's the effective rates.

This is exactly why the governor's endless screed about Vermont income taxes is so lame.  We have a high top rate (now 8.95%) but the effective rate for those earning over $500,000 is 5.3%.  That's also one of the reasons the business climate rankings game is so misleading; they rely on the marginal rates instead of the effective rates.  

Fourth, you complained about the Legislature considering paid sick days.  I guess you didn't know that Austria has had that for years, along with five weeks of vacation.  

Fifth, you said that the "Lack of health care competition matters."  I assume you're joking. Austria has a tax-based national health system and they spend half what we do overall.  

Indeed, that may be important because Burton (presumably providing good benefits) can undoubtedly save money in Austria by NOT having to pay directly for America's bloated health insurance.  Austrian firms pay more than twice U.S. payroll taxes but it's certainly less than the combined cost of U.S. payroll taxes and insurance premiums.  

Sixth, did you know that from 1998 to 2008, Vermont's inflation adjusted per capita GDP grew 29% compared to New Hampshire's 17%? (U.S. Dept. of Commerce, Bureau of Economic Analysis) How could that be if New Hampshire is so much better than Vermont?  

Seventh, in the last five years, NH has lost 20% of its manufacturing jobs (16,300);  During that same period, Vermont lost 7,100 manufacturing jobs (19%).(VT & NH LMI/CES) How can that be if Vermont is so bad?  

And so on.  Are there problems?  Yes.  Are they unique to Vermont?  No.  So why must you persist with this tired line about Vermont being anti-business?  It really doesn't help solve problems.

Doug Hoffer

Chinese Hackers Force Vermont-Based Blogger to Suspend Publication

Security Breach at Google’s Gmail Service  Forces Temporary Shutdown of The ‘Skeeter Bites Report to Protect Sources, Subscribers

Gmail hacked

(Posted 8:00 p.m. EDT Sunday, March 21, 2010)

Dear Readers:

For the first time in the more than four years since I launched The ‘Skeeter Bites Report, I have been forced to miss a Monday deadline and not publish. I regret to announce that due to a security breach at Google’s Gmail service (Google is the parent company of my blog host, Blogger), I have been forced to temporarily suspend publication.

Hackers broke into the Gmail server and stole the entire contact lists of millions of Gmail users, including Yours Truly. This has resulted in everyone on my Gmail list — including many subscribers of The ‘SBR — receiving very unwanted spam e-mail, with my Gmail address as the sender.

The Associated Press reported Thursday that its correspondents — and reporters for other foreign media working in China — have seen their Gmail accounts hacked.

I can only speculate that I became a target of the hackers — even though I operate in the U.S. from my home in Vermont — because of an article I posed on The ‘SBR last July on the bloody riots in Xinjiang Province.

Apparently, somebody in China didn’t like what I posted.

The bottom line is, as a direct result of this hack, not only has the security of my Gmail account been compromised, but likewise the security of my blog, as it is a Google-hosted site.

Because of this security breach, I have no alternative but to suspend publication of The ‘Skeeter Bites Report until further notice, in order to protect my sources and subscribers. Hopefully, the suspension won’t be for long.

Sincerely,

Skeeter Sanders

Editor and Publisher

The ‘Skeeter Bites Report

Fundraising Quarter Ends in Ten Days!

{First, a quick plug for my blog Senate Guru.}

As we await the historic vote on health care reform, it’s important to remember that we’re just ten days away from the end of the first fundraising quarter of 2010.  The fundraising totals reported in this quarter will be pivotal to determining the tenor of many races for the rest of the year.  If there is any time to contribute, now is the time!

Please head over to the Expand the Map! ActBlue page and contribute whatever you are able to these terrific Democratic candidates for Senate.

Democrat Currently At End-of-Quarter Goal Distance to Goal
Kendrick Meek
$25
$300
$275
Bill Halter
$445
$750
$305
Joe Sestak
$1,320
$1,600
$280
Paul Hodes
$1,447
$1,700
$253
Robin Carnahan
$1,163
$1,400
$237

Remember, the contribution you can make isn’t just a donation to a single candidate or political campaign.  It’s an investment against Republican obstruction (and conservaDem enabling) and an investment toward achieving that more perfect union.