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Stealing from Millennials

Excerpts from Confessions of an Old Man

Confessions of an Old Man
“There’s nothing like doing things with other people’s money.” President Donald Trump

March 22, 2020 – Every US president since Reagan has added hundreds of billions to the national debt compared to his predecessor. President Trump may top all the previous presidents by having an estimated annual deficit of $1 trillion by 2020 or even sooner. Congress and the White House have been living on the backs of the younger generation since 1980 by continuing to spend more than they collect in taxes. They have no plans to balance the budget, nor do they have any plans to pay back the principal on the debt. Having no intention or plans to pay the national debt is nothing less than stealing from the MI generation.

In May 2016 candidate Trump proudly claimed, “I’m the king of debt. I love debt.” As president, he has made it clear that he does not mind if deep tax cuts result in a ballooning of the national debt. He proved that by signing the Tax Cuts and Jobs Act in December 2017. During the 2016 campaign, candidate Trump bragged about using other people’s money. He said:

“It’s called OPM. I do that all the time in business. It’s called other people’s money. There’s nothing like doing things with other people’s money.” However, in this case, OPM is coming from the MI generation. The reason Congress and the White House don’t care and continue to add to the national debt is because it is not their problem. Congress’s own self-interest trumps any concerns it may have for high national debt’s detrimental impact on future generations. They will be long gone before any of the serious problems from uncontrolled national debt surface. (more…)

Profiting from Student Debt

Excerpts from Confessions of an Old Man

Confessions of an Old Man “Washington borrows at 2 percent and charges students 7 percent in interest”

February 22, 2020 – The federal government has been profiting from student debt earning $66 billion on loans originated from 2007 to 2012, according to Senator Elizabeth Warren. The profits could be as high as $185 billion on new student loans made over the next ten years. According to the US Department of Education, the federal government charged interest rates from 4.45 to 7 percent on student loans in fiscal year 2017–18. At the same time, SoFi, a private company, offers student loans as low as 3.25 percent. The federal government uses a ten-year bond issued by the US Treasury as a benchmark for its cost, which was about 2.4 percent in 2017. It appears that Uncle Sam is even worse than the Wall Street banks when it comes to making profits from student loans.

To help students attend college, Congress passed the Higher Education Act of 1965. It guaranteed student loans against defaults, promised certain interest rates to the banks, and paid fees to banks for the administration and collection of student loans. Later on, the federal government decided to provide student loans directly instead of going through financial institutions. The Direct Loan (DL) Program began its operation in the academic year 1994–95. Under this program, the federal government provides the capital and loan servicing, and the loans are originated by colleges and universities. By July 2010, the program accounted for 100 percent of new student loans—a government-controlled student loan program. One of the shortcomings of student loans through the federal government is having virtually no option to refinance the high interest rates. This option has been commonly available for other types of loans in the private sector but not for student loans from the government. Lowering student loan rates to match the cost to the federal government could put its profits into students’ pockets and help grow the economy. (more…)

Make a Change

Excerpts from Confessions of an Old Man

Confessions of an Old Man “Take a look at yourself, and then make a change.” Late Michael Jackson

Michael Jackson’s song, “Man in the Mirror” can be taken as a challenge by members of the MI generation to take a look at themselves, take charge of their destiny, and make a change. And they have the power and tools in their hands to do so. They can also make their parents and grandparents help them accomplish that goal. For the first time in American history, millennials will represent the largest segment of eligible voters: 32 percent in 2018 and 34 percent in 2020. Democrats and Republicans, both parties being gravitated toward extreme positions, offer a great opportunity to make a change starting in 2018 and beyond. One can see the frustration of many Americans with the daily grind of working hard and getting nowhere, going through security checks at every high-rise building and airport, waiting in lines at every government office, and forever being on hold when calling a government agency or credit card company. The choice is to make a change or have the federal government take more control over our life.

The United States has fought communism and socialism since World War II to promote democracy, freedom, and human rights. However, it now finds itself working toward a socialist order and building a wall. It has a centralized health-care system controlled by the health insurance industry and the government (Medicare and Medicaid). The government decides how Americans behave financially by printing money and dictates how we spend money through the tax code. It is monitoring our emails, phone calls, and physical activities by placing video cameras at virtually every street crossing and in every building. Furthermore, American politicians pick their voters through the gerrymandering process instead of voters getting to pick their leaders.

The major impediment to a change and improving the future for the MI generation and the middle class are the two major political parties: Democrats and Republicans. Both parties believe they are the best for the country and that the country will not function without them. There is no room for a third mainstream political party or independent leader in their eyes. Both parties have done and will continue to do everything possible to keep third-party or independent candidates from even running for election. They have total control over who gets nominated for any public office at the state and federal levels.

A majority of Americans consider themselves as independent. However, they have no voice in the governing of the country. The bottom line is that both parties are the same when it comes to governing and living off the backs of the MI generation. Both parties’ leaders behave like children and blame one another and everyone but themselves for their failures to govern. Their only interest seems to be getting reelected, instead of serving the people.

“So the trillion-dollar question is how do you go about making a change, and what is the road map toward accomplishing that?” ….More

70 Congresspersons who are 70 years old in 2019

	District	Name	Party	Year Assumed Office	Born	Age	Years in Congress	% Win Votes in 2018	Total Votes casted for the district	Winner’s share of Votes	Major Challenger’s Share of Votes	Win Margin Against Major Opponent

1	Alaska at-large	Don Young	Republican	1973	1933	85	46	53.3%	280,978	149,779	131,217	7%
2	Texas 30	Eddie Bernice Johnson	Democrats	1993	1935	83	26	91.1%	183,174	166,784	16,302	82%
3	California 32	Grace Napolitano	Democrats	1999	1936	82	20	68.8%	177,031	121,759	55,234	38%
4	Florida 20	Alcee Hastings	Democrats	1993	1936	82	26	Unopposed	202,824	202,659	–	100%
5	New Jersey 9	Bill Pascrell	Democrats	1997	1937	82	22	70.3%	200,416	140,832	57,920	41%
6	Kentucky 5	Hal Rogers	Republican	1981	1937	81	38	78.9%	218,017	172,093	46,002	58%
7	New York 17	Nita Lowey	Democrats	1989	1937	81	30	88.0%	193,318	170,168	23,198	76%
8	California 43	Maxine Waters	Democrats	1991	1938	80	28	77.7%	196,052	152,272	43,720	55%
9	Georgia 5	John Lewis	Democrats	1987	1940	79	32	Unopposed	–	–	–	100%
10	Maryland 5	Steny Hoyer	Democrats	1981	1939	79	38	70.3%	304,209	213,796	82,441	41%
11	California 12	Nancy Pelosi	Democrats	1987	1940	78	32	86.8%	317,072	275,292	41,854	74%
12	Florida 27	Donna Shalala	Democrats	2019	1941	78	0	51.8%	252,586	130,743	115,684	4%
13	North Carolina 4	David Price	Democrats	1997	1940	78	22	72.3%	334,495	242,002	80,279	45%
14	South Carolina 6	Jim Clyburn	Democrats	1993	1940	78	26	70.1%	206,433	144,765	58,421	40%
15	California 40	Lucille Roybal-Allard	Democrats	1993	1941	77	26	77.3%	121,449	93,938	27,569	55%
16	California 47	Alan Lowenthal	Democrats	2013	1941	77	6	64.9%	221,036	143,354	77,584	30%
17	Illinois 7	Danny Davis	Democrats	1997	1941	77	22	87.6%	246,243	215,746	30,534	75%
18	Texas 31	John Carter	Republican	2003	1941	77	16	50.6%	286,007	144,680	136,425	1%
19	California 18	Anna Eshoo	Democrats	1993	1942	76	26	74.5%	302,238	225,142	77,071	49%
20	Florida 24	Frederica Wilson	Democrats	2011	1942	76	8	Unopposed	–	–	–	100%
21	North Carolina 3	Walter Jones	Republican	1995	1943	76	24	Unopposed	–	–	–	100%
22	Texas 12	Kay Granger	Republican	1997	1943	76	22	64.3%	268,491	172,557	91,018	29%
23	California 8	Paul Cook	Republican	2013	1943	75	6	60.0%	170,785	102,415	68,314	20%
24	Connecticut 3	Rosa DeLauro	Democrats	1991	1943	75	28	93.6%	154,277	144,452	9,874	87%
25	New York 15	José Serrano	Democrats	1991	1943	75	28	96.0%	129,674	124,469	5,187	92%
26	North Carolina 5	Virginia Foxx	Republican	2005	1943	75	14	57.2%	277,002	158,444	119,111	14%
27	Wisconsin 5	Jim Sensenbrenner	Republican	1979	1943	75	40	62.0%	364,005	225,619	138,322	24%
28	California 3	John Garamendi	Democrats	2009	1945	74	10	58.1%	232,251	134,875	97,313	16%
29	California 53	Susan Davis	Democrats	2001	1944	74	18	69.1%	268,794	185,667	83,057	38%
30	California 6	Doris Matsui	Democrats	2005	1944	74	14	80.4%	201,939	162,411	39,580	61%
31	Illinois 9	Jan Schakowsky	Democrats	1999	1944	74	20	73.5%	290,351	213,368	76,943	47%
32	Minnesota 7	Collin Peterson	Democrats	1991	1944	74	28	52.1%	281,509	146,672	134,843	4%
33	Missouri 5	Emanuel Cleaver	Democrats	2005	1944	74	14	61.7%	283,785	175,019	100,744	23%
34	New Jersey 12	Bonnie Watson Coleman	Democrats	2015	1945	74	4	68.7%	252,375	173,334	78,993	37%
35	New York 2	Peter King	Republican	1993	1944	74	26	53.1%	241,152	128,078	112,377	6%
36	Arizona 1	Tom O’Halleran	Democrats	2017	1946	73	2	53.8%	266,089	143,240	122,933	8%
37	Georgia 13	David Scott	Democrats	2003	1945	73	16	76.2%	293,010	223,157	69,736	52%
38	Indiana 4	James Baird	Republican	2019	1945	73	0	64.1%	244,363	156,539	87,726	28%
39	New York 12	Carolyn Maloney	Democrats	1993	1946	73	26	86.4%	251,604	217,430	30,444	73%
40	Tennessee 1	Phil Roe	Republican	2009	1945	73	10	77.1%	224,282	172,835	47,099	54%
41	California 13	Barbara Lee	Democrats	1999	1946	72	20	88.4%	294,837	260,580	34,201	77%
42	Georgia 2	Sanford Bishop	Democrats	1993	1947	72	26	59.6%	229,171	136,699	92,585	19%
43	Illinois 1	Bobby Rush	Democrats	1993	1946	72	26	73.5%	257,885	189,560	51,061	47%
44	Maryland 2	Dutch Ruppersberger	Democrats	2003	1946	72	16	66.0%	253,302	167,201	77,764	32%
45	Michigan 1	Jack Bergman	Republican	2017	1947	72	2	56.3%	332,497	187,251	145,301	13%
46	New York 16	Eliot Engel	Democrats	1989	1947	72	30	Unopposed	–	–	–	100%
47	North Carolina 12	Alma Adams	Democrats	2015	1946	72	4	73.0%	276,867	202,228	74,477	46%
48	Ohio 9	Marcy Kaptur	Democrats	1983	1946	72	36	67.8%	231,937	157,219	74,684	36%
49	Texas 35	Lloyd Doggett	Democrats	1995	1946	72	24	71.3%	194,067	138,278	50,457	43%
50	Arizona 3	Raúl Grijalva	Democrats	2003	1948	71	16	63.9%	179,518	114,650	64,806	28%
51	California 19	Zoe Lofgren	Democrats	1995	1947	71	24	73.8%	220,319	162,496	57,724	48%
52	Florida 8	Bill Posey	Republican	2009	1947	71	10	60.5%	360,527	218,112	142,408	21%
53	Kentucky 3	John Yarmuth	Democrats	2007	1947	71	12	62.1%	278,720	173,002	102,012	24%
54	Mississippi 2	Bennie Thompson	Democrats	1993	1948	71	26	71.8%	221,379	158,921	48,039	44%
55	New York 10	Jerry Nadler	Democrats	1993	1947	71	26	82.1%	210,714	173,095	37,718	64%
56	North Carolina 1	G. K. Butterfield	Democrats	2004	1947	71	15	69.8%	269,534	188,060	81,399	40%
57	Oregon 4	Peter DeFazio	Democrats	1987	1947	71	32	56.0%	372,893	208,710	152,513	12%
58	South Carolina 2	Joe Wilson	Republican	2002	1947	71	17	56.3%	257,139	144,642	109,284	13%
59	Texas 9	Al Green	Democrats	2005	1947	71	14	89.1%	153,001	136,256	5,967	78%
60	Vermont at-large	Peter Welch	Democrats	2007	1947	71	12	69.2%	272,451	188,547	70,837	38%
61	Virginia 3	Bobby Scott	Democrats	1993	1947	71	26	91.2%	217,722	198,615	19,107	82%
62	West Virginia 1	David McKinley	Republican	2011	1947	71	8	64.6%	198,214	127,997	70,168	29%
63	Connecticut 1	John Larson	Democrats	1999	1948	70	20	63.6%	272,020	173,133	95,207	27%
64	Florida 21	Lois Frankel	Democrats	2013	1948	70	6	Unopposed	–	–	–	100%
65	Florida 5	Al Lawson	Democrats	2017	1948	70	2	66.8%	270,326	180,527	89,748	34%
66	Massachusetts 1	Richard Neal	Democrats	1989	1949	70	30	Unopposed	–	–	–	100%
67	Oregon 3	Earl Blumenauer	Democrats	1997	1948	70	22	72.6%	384,326	279,019	76,481	45%
68	Pennsylvania 16	Mike Kelly	Republican	2011	1948	70	8	51.6%	262,396	135,348	124,113	3%
69	Texas 11	Mike Conaway	Republican	2005	1948	70	14	80.1%	220,377	176,603	40,549	60%
70	Texas 36	Brian Babin	Republican	2015	1948	70	4	72.6%	221,956	161,048	60,816	45%

Sources: Ballotpedia, Washington Post, Votesmart.org

Debt Denial: Stealing from Our Kids

Our handling of the national debt is like a grand, inter-generational Ponzi scheme that’s destined to drown our children and grandchildren in red ink. Our leaders like to call their strategy borrowing, but it is really tantamount to stealing — from our children, worse yet. Why? Because we have no plans to pay the debt. None. We continue to borrow just to make interest payments that are estimated to be $5 trillion over the next decade while doing nothing to pay down a staggering debt of $17 trillion.

Equally alarming, perhaps even surreal, is that party leaders who can hardly agree on the color of the White House can be found nodding their approval at the fiscal fiction “that deficits don’t matter,” as then-Vice President Dick Cheney told a disbelieving Paul O’Neill, the treasury secretary at the time.

Fast forward a decade to President Obama, the anti-Cheney, who was telling George Stephanopoulos on ABC that “we don’t have an immediate crisis in terms of debt. In fact, for the next 10 years, it’s gonna be in a sustainable place.” House Speaker John Boehner, considering the President’s comments in a separate ABC interview, concurred that the crisis is not immediate. This pervasive Washington attitude is reflected in Office of Management and Budget’s 2014 projections that show the national debt haplessly climbing skyward through 2020 with no sign of coming down.
(more…)

Flip Side of the Minimum-Wage Debate

September 8, 2014 – Something that Washington does not want you to know about and hopes that nobody else will discuss during the minimum-wage debate is take-home pay after taxes for low-wage earners. Washington claims that Americans should be paid living wages so that they can live a decent life. However, it is not willing to give up its share of the booty that it would collect from the same low-wage earners it claims to help.

For example, the federal government will collect at least 15 percent of the increased income from those low-wage earners through payroll tax. In other words, if the minimum wage goes up by a dollar, the federal government will take away, directly or indirectly, at least 15 cents of that additional dollar from the working poor.

Asking large corporations, which are in business to make money, to pay additional wages is like asking them to be saints. Government mandates do not have a major impact on large corporations, since they will figure out a way around them. After all, they can rent lawmakers; one former senator famously declared, “My vote can’t be bought, but it can be rented.” On the other hand, politicians do not pay anything from their pockets either. They will just give the money to one group and take it from another, but not from the special-interest groups that finance their campaigns. (more…)