GOVEROSITY! Say What?

Government Generosity. GOVEROSITY! Doesn’t this violate Say’s Law? Before I get into classical economic theory that has split government parties for decades, let me discuss my “coining” this new word and the import for the world: GOVEROSITY!

With the passage of the $1.9 trillion American Rescue Plan, the Democrats (except 1 and 0 Republicans) are helping the hardest hit, most impoverished Americans, recover from the health and economic impacts after one year of the Covid-19 pandemic. Recall the Trump Administration gave about $1.9 trillion mostly to the wealthy people and companies in tax cuts. As we prepare our IRS taxes, check out the changes in tax rates contained in the Tax Cuts and Jobs Act of 2017 according to the Tax Policy Center.

After Covid hit the United States, Congress and the Trump Administration provided about $2 trillion to help families, airlines, hotels, and other businesses through the Paycheck Protection Plan as reported by CNBC. In December 2020, the government gave out $900 Billion for Covid relief.

When I was a Guilford College stud (uh, student), one of my favorite classes was MacroEconomics, Econ 221. I loved this class mostly because of the brilliance and enthusiasm of Professor Robert Williams, fresh out of Stanford University. Here is his bio from Fernwood Publishing:

“Robert graduated Valedictorian from Shades Valley High School in Birmingham, Alabama in 1968. He received a B.A. in Economics from Princeton University in 1971 and a Ph.D. in Economics from Stanford University in 1978. His work experience includes research economist for the Brookings Institution (1973-75), Guilford College Economics Department (1978-present), and Voehringer Professor of Economics (1993-present).”

Checkout his book: The Money Changers: A Guided Tour Through Currency Markets

Professor Williams contrasted supply side economics known as Say’s Law where supply creates demand (like Field of Dreams: Built It and They Will Come) versus from Keynes’ law, that demand creates its own supply (e.g. Necessity is the Mother of Invention). To compare these ideas, see this article in Lumen. As a result of the 1970’s stagnant American economy with high unemployment and double-digit inflation, the rise of the Reaganomics “trickle down” experiment began in 1980.

My first job in the oil fields and then in the federal government as an environmental scientist were during the Reagan administration. Many loved the tax and regulatory cuts and anti-union fights. Recall the 11,000+ air traffic controllers (fired, i.e. History) who lost government jobs next time you fly anywhere and especially to Reagan National Airport). There should be a memorial!

Here is a great article about these changing political economic forces by E.J. Dionne, Jr. in the Washington Post where Reagan (and his predecessors) made “big” government the problem and Biden is showing that government can be the solution.

Increasingly, I’ve been impressed by the generosity by current billionaires including Buffett, Gates, Bezos and others who can afford millions and even billions towards important health and environmental causes. Maybe we need GOVEROSITY to become contagious, even in the corporate sector to have some CORPORSITY. This would be a radical departure from the selfish approach some ultra-rich people have taken, especially recently. Advertising could be done with reality TV (not just on YouTube) actually helping others!

So for all the people who are receiving free government handouts who do not really need to increase their wealth, please consider following Say’s Law and share with others in need. We needn’t look very far to help needy causes around the world! On this website I have pointed to a few environmental charities and here would like to encourage us all do more to give back or pay it forward.

To quote Mother Teresa from Goodreads:

“Let no one ever come to you without leaving better and happier. Be the living expression of God's kindness: kindness in your face, kindness in your eyes, kindness in your smile.”

Update March 19, 2021

Thanks for several comments that I received by email. Professor Williams wrote:

“Bill Dam,
It's terrific to see a former student who is actively engaging the world using tools of analysis developed back in the day. I like how you've included not-for-profit & non-profit organizations in the solutions to our big problems. Government structures can't do it all. Nor can the for-profit sector. Good leadership that brings the three together-- for-profit, non-profit, & government (international organizations, federal, state & local)-- in positive synergies to find solutions may be our only hope.
Thanks for remembering my class.
Robert G. Williams, Economics, Guilford College”

It felt wonderful to reconnect with Professor Williams after 43 years and to receive his great feedback!

I also received a comment from my brother Bob:

“So Bill I have read your latest blog. All good until I get to the government "handout. " Yes people like us don't really need it and I get what you are saying about generosity. Promise ours will go into the economy. Do you feel its really a handout or maybe a hand up to the majority of Americans making less than $75 k? So many people work in the service industry for example. Hotels and restaurants shut down by the pandemic haven't worked in a year. Handout or needed help. My masseuse a true entrepreneur had just bought her little building up the street. I was going once a month, haven't gone in over a year she has seen her work fade. She is self employed not eligible for unemployment. What is a couple thousand dollars from the government. Looks cheap to me Trump gave a big handout to the rich. So many people need more stimulus they didn't choose this pandemic shut down. Sorry to go on but I think you know what I'm saying.”

I agree with him that the majority of people receiving benefits from the American Rescue Plan really need the help! This week President Biden said most of the $1.9 trillion law will help 60% of Americans while the benefits of the Trump tax cuts only helped a small percentage of already wealthy Americans.

So the goal of this Conserve-Prosper blog is to promote sustainability principles with an attitude of gratitude and exemplify how we can improve our world through awareness, education, and generosity. Thanks again to everyone making a positive difference in the world including the participants of this blog and other social media that are enriching our collective consciousness!

Diverse Unity

The United States of America began marching in the opposite direction yesterday from the past four years. From South to North, from Florida to Delaware! Trump’s efforts to fan the Confederate embers of the Civil War are being extinguished as he returns to hopefully private life perhaps behind bars (Lock Him Up!)

The Biden-Harris administration took power yesterday by emphasizing diversity to represent all Americans as well as coming together in unity. Leaving not minute to waste, President Biden signed 15 Executive Orders (see AP) including fighting the pandemic, ending construction on the Border Wall and Keystone oil pipeline, and rejoining the Paris Climate Accord and the United Nations World Health Organization (WHO). When he gave the oath of office to over 1000 political appointees, President Biden insisted they must treat everyone with decency and respect or be fired on the spot, no if’s, and’s, or buts! As a federal scientist working in the Trump Administration for over one year, that would have been great to feel the President had our back instead of bullying us for corrupt loyalty and suppressing scientific inquiry.

What an amazing turnaround! Vice President Harris, the first woman to become VP fulfilled her duties as President of the Senate to swear in three new Democratic Senators, all three with diverse backgrounds. Now the Senate is divided 50-50 for Democrats and Republicans with Harris providing the tie breaking vote. Can these diverse ideas move forward to make progress that will save America?

What a feeling of relief after the past two months of watching Trump and his supporters spread the Big Lie that he did not lose the election (“Stop the Steal”) which escalated to the explosive, white supremist mob breaking into the Capitol trying to disrupt election certification. The fear of more uprisings resulted in 25,000 National Guards in D.C for the inauguration! I’ve been in a state of shock and vulnerability not felt since 9-11 when I worked in the D.C. metro area witnessing first hand the tragic events by supporting the federal responses to terrorism. I will never understand how 74 million Americans (47%) voted in 2020 for continuing Trump’s delusionary dismantling government institutions, human rights, and environmental protections. If they are so disappointed with the loss of a dictator, maybe they should move to Russia.

Before we can have unity there needs to be accountability for anyone who instigated insurrection to overthrow our democratic government. It’s Time to Heal which requires purging the poison of lies and corruption in all areas of public and private life. We need diversity of cultures, ethnicities and ideas based on scientific evidence and respect for spiritual beliefs. We can all make a difference in the world by making positive changes and demanding honesty and transparency. The past three presidents discussed the peaceful transition of power that defines our democracy!

Joyful expressions of diverse unity came through amazing performances of poetry and music. Here are three that touched our hearts:

Amanda Gorman The Hill We Climb

Tim McGraw and Tyler Hubbard Undivided

Bruce Springsteen Land of Hope and Dreams

How's Your Climate?

How’s the weather and climate where you live? Perhaps if you’re not a winter skier you may have not noticed and even enjoyed the lack of snow this winter. However, there is a price to be paid in the coming months.

The southwestern United States is currently experiencing an exceptional drought (D4) as shown by the US Drought Monitor which states, “With large sections of the central and southern parts of the West Region already in D3 to D4, not much more deterioration can be introduced, but a few small areas deteriorated enough to be reflected on the map, specifically north-central Utah (to D2), interior northeastern Utah (to D4), and southeasternmost New Mexico along the Mexican border (to D4).” Severe drought is D2 and extreme drought is D3. So obviously D4 is really bad and now our local water supplier is calling for voluntary water conservation.

So how’s the climate where you live and how severe, extreme, or exceptional might it become in your and your children’s lifetime? In many places we see a direct connection between less winter snowpack, faster spring melts, declining water supplies, larger summer wildfires, more air pollution and less farm production. This is the situation in the western US, much of Australia, Africa, and other arid regions. More severe weather makes climate change bad news for most everyone as we share global food distribution as one example.

Coastal flooding will become more severe affecting hundreds of millions of people. Here are some projections from a recent article in Nature. Other reports discuss affecting our ocean circulation and increased severe hurricanes or monsoons around the world.

Finally, the new American President only one week in office is taking bold action. Yesterday, he held a climate day signing executive orders that address responding to the climate crisis as described in the White House fact sheet. There will be a climate summit during Earth Day in April and UN climate meeting in Scotland in November. See BBC news about special envoy John Kerry, who negotiated the Paris agreement, says time is running out for taking action!