Monthly Archives: April 2017

May 1, St. Tammany day

May 1 is St. Tammany day, a day to rejoice in the achievements of Tammany Hall, and of St Tammany, the guardian of crooked politicians everywhere. The Sons of St. Tammany started in 1773 as a charitable club of notable revolutionary-era individuals including Benjamin Franklin, John Hancock, and John Dickenson, but evolved into perhaps the most corrupt, and American, of political organizations. The picture of a US politician – the cartoon version at least — is the Tammany Democrat: a loud, drunken, womanizer, willing to do or promise whatever the people seem to want at the moment. Tammany and its bosses helped form this image. They helped new immigrants, but did so by creating needless government jobs, by filling them often with incompetent loyalists, and by overcharging on government contracts. Today, these Tammany ways rule in every major American city; the other clubs of the day are gone or influence-less.

John Hancock leads a meeting of the St. Tammany (Columbian) society. Note the "Appeal to Heaven flag and the Indian, real or imagined. Indians participated in several, early St. Tammany meetings.

John Hancock leads a meeting of the St. Tammany society. Note the “Appeal to Heaven” flag. While Indians participated in some, early meetings, the one here is, I suspect, a ghost: St. Tammany.

In revolutionary-era America, the Sons of St. Tammany was just one of many social-charitable clubs (Americans like to form clubs), in many ways it was similar to the Masons and the Cincinnati, but those clubs were international and elitist. The sons of Tammany was purely American, and anti-elitist. It was open to anyone born on this side of the Atlantic, and had Indian customs. The Cincinnati society, for comparison, started with members who were as notable (Alexander Hamilton, George Washington, Marie, Marquis de Lafayette, Henry Knox, etc.) but was originally open only to high officers of the regular army, including foreigners like Lafayette, but not ordinary soldiers, minutemen (militia), or the general public. The symbols of the Tammanies were American: the liberty-cap and the “Appeal to Heaven” flag, now a popular symbol of the Tea Party; the leader was called by an Indian name: Sachem. By contrast, the Cincinnati society symbol was the Imperial Eagle (Washington’s was gold with diamonds), and the leader was called “general”. The Tammany society began admitting immigrants in 1810 or so, while the Cincinnati society remains closed to this day, except to descendants of Revolutionary officers — an aristocratic affectation in the eyes of some.

It was Aaron Burr who first saw the opportunity to use the Tammany organization as a for-profit, political machine. In the years 1795-9, New York was suffering from yellow fever and a variety of other diseases that were taken to be caused by a lack of clean water. Burr proposed, with Tammany support, the creation of a corporation to build a new water system to bring fresh, clean water from the Bronx River to lower Manhattan via iron pipes. The Manhattan company was duly chartered, with directors who were primarily Tammany men, Republican-Democrats, and not Federalists. Federalists (Hamilton, primarily) controlled the only NY banks at the time and controlled the directorate of every chartered company in the city. The Manhattan company requested a $2,000,000 perpetual charter, twice as big as the charter of Hamilton’s Bank of New York, and a monopoly on water distribution. These were reasonable requests given the task, but unusual in the lack of Federalist or governmental oversight. But the Manhattan company was a water company, and water was needed. But Burr’s intent, all along, it seems was to build a bank, not a water company. After the charter was approved, but before signing, he amended it to allow any excess funds to be used for any legal purpose. 

In this cartoon by Dr. Seuss, The Tammany Tiger says, "Today is the Big Day Folks. Vote Early and Often."

In this cartoon by Dr. Seuss, The Tammany Tiger says, “Today is the Big Day Folks. Vote Early and Often.”

Money was raised, but only $100,000 used for the water system. The remaining 95% of the charter funds, $1,900,000, went to found “The Bank of The Manhattan company” — later to be known as “The Chase Manhattan Bank” or “The Manhattan Bank of Cholera.” Instead of building the reservoir in upper Manhattan and filling it with clean water as originally proposed, Burr’s Tammany trustees voted to dig wells in lower Manhattan, and placed its reservoir in lower Manhattan too, near Chamber’s St,  next to a cemetery where Cholera victims were buried. New York suffered with Cholera, Typhoid, and leaky, wooden pipes until 1842 when Peter Cooper brought clean water to lower Manhattan from the Groton River via iron pipes. To this day, crooked water contracts are a staple of Tammany politics

The Bank of the Manhattan company opened at 40 Wall St on September 1, 1799, a mere four months after the water company’s incorporation. Hamilton was furious. The company continues today as The JP Morgan, Chase Manhattan Bank, one of the largest banking institutions in the world. Burr used the money and power of his company to reward supporters and to run for vice president with Thomas Jefferson’s tacit support. Except for his Tammany candidacy, John Adams would have won New York and a second term as president. Burr’s career pretty-well died after the Hamilton duel, but Tammany did well without him. By 1812, the Society built its first Tammany Hall, officially called the Wigwam, a $55,000, five-story building with a meeting hall for 2000. New York Democratic politics would center on Tammany Hall for the next century at least.

Following disappointment with John Quincy Adams, “the bitter branch of the bitter tree,” Tammy leaders went national. They recruited Andrew Jackson, a war hero and early recruit of Burr’s. They’d support Jackson if he’d hand over spoils, control of government jobs. He agreed and, as president, fired perfectly good, long-standing government employees He replaced them with Democratic loyalists. When Jackson stepped down in 1833, Tammany elected an equally corrupt New Yorker, Martin van Buren. Though there were periodic Whig and Republican reforms, Tammany learned they could wait those out. They always re-emerged like mushrooms after a rain.

Boss Tweed and other Tammany leaders: who stole the money?

Boss Tweed and other Tammany leaders in a cartoon by Nast, Tammany Ring. “Who stole the money? He did.”  

A key vote-getter in the Tammany system is to provide Thanksgiving dinners and other charitable giveaways for the poor, as well as promises of jobs. By the late 1800s, William J. Brian added promises of soft money and wealth redistribution, cornerstones of the Democratic platform to this day. Tammany also tends to be for low tariffs as opposed to the high tariff ideas of Hamilton and many Whigs and 19th century Republicans. A case can be made for either view.

Tammany helped New York immigrants, particularly the Irish to get citizenship and avoid legal troubles in return for votes and occasional muscle. In other cities, Democratic clubs were less open to Catholics, reflecting the views of the common voter in each state. In the North they were pro-union, in the South anti, electing Klu Kluxers like George Wallace, Sam Ervin, and Robert Byrd. This lead to a famous split in the Democratic party about the 1968 convention. Famous Tammany leaders include William M. “Boss” Tweed, “Big” Tim Sullivan, and “Gentleman” Jimmy Walker. Sullivan famously authored the first anti-gun law, the Sullivan act; it was designed to protect his thugs against private citizens shooting them. It didn’t always work.

Edwin Edwards, Democratic Governor of Louisiana. 1972-1996. Who would not trust this man?

Hon. (?) Edwin Edwards, Governor of Louisiana. 1972-1996. Tammany lives

If you want to see Tammany politics in action, visit almost any large US city, or read its newspaper. In Chicago, the dead vote, and 4 of the last 6 governors have gone to jail. Mayor Daily famously told Kennedy that 90 percent of the registered voters of Cook County would vote for him. They did (sort of); because of this, JFK won Illinois and the presidency. In New York, voters discovered only in the 1960s that Tammany’s leader, Carmine DeSapio had been working for 30 years with known gangland murderer, Charles “Lucky” Luciano. In Detroit, where I live and corruption in the water department is legendary. Race-based job handouts, unemployment is high along with high minimum (living) wages. We’re now in the process of a $70,000,000 project to replace 100 feet of sewer pipe, and we’re building a $140 million, 3.3 mile trolley. Tammany loves all public works.

Then there is Louisiana, home to St Tammany parish. Louisiana Democrats like Huey Long and Edwin Edwards (shown at left) are unusual in that they’re proud to say that their corrupt methods are corrupt. Edwards has had two long runs as governor despite several convictions for doing illegal things he admits to doing. When Edwards was asked why he did favors for his friends. He responded: “Who should I do them for? My enemies?” Or, to quote one of Edwin Edwards campaign ads. Vote Edwin EdwardsPeople seem to love it, or did until the levy broke. There is a particularly American grandeur to all this. As Will Rodgers said, “America has the best politicians money can buy.” Today is the day to be proud of that uniquely American tradition. You too can grow up to buy a president.

Robert Buxbaum, April 28, 2017. I ran for water commissioner, and have written about sewage treatment, flood avoidance, and fluoride, as well as the plusses and minuses of trade unionization, and the difference between Republicans and Conservatives.

Solving the savings dilemma (how to have savings)

A few days ago, I wrote a post about the lack of savings in America, the social causes for it, and the damage it causes. I had some governmental suggestions, but suspect I didn’t emphasize that the main responsibility is personal: if you want savings, you’ve got to save.

Every rich person spends less than he earns. If you aspire to be rich, spend less on clothes than you can afford.

Every rich person spends less than he earns. If you aspire to be rich, spend less on clothes than you can afford.

If you want to have savings, it is up to you to spend less than you earn. If you don’t, you’ll never be rich, you’ll never have savings or net-economic worth, and you’ll always be strung-out over emergencies. Income and gifts won’t help if spending rises to match. At all incomes, the people who get richer are those who tailor spending to be less than earnings.

There is another personal honesty issue here, and a marriage issue too. If you spend more than you earn, someone will be cheated, and that person (your wife, husband, neighbor, friend) is likely to get mad. Earn $100 and spend $99.99, you can be honest and well liked. if you earn $1000 and spend $1000.01 and you will cheat someone you love sooner or later. Be an honest fellow and spend less. Clothes is a good place to start: say no to the fancy dress and the fancy wedding, and to fancy clothes in general. If you smoke, vaping can be a life and money saver. And try to avoid pot-smoking, at $400/oz that’s got to be a killer. And here are some water savers.

A good way to know if you are doing things right :Start a bank account, and check the balance and resolve to see it $10 higher at the end of the week than before. And that’s my two cents.

Robert Buxbaum, April 26, 2017.

Black folks have no savings (poor whites too)

The wealth of the mean American household has dropped significantly since 2007, a result of the general de-industrialization of America. It’s not that America has gotten poorer, but in the last 8 years we’ve increased the economic divide, enriching the richest few percent while leaving behind the working and bourgeoise classes. We are beginning to come back, but a particularly nasty legacy remains, especially among black families. Some 47% of black families have no liquid savings  — a far greater fraction than in 2007. The lack of savings also appears in white families (19%), and Hispanics (41%), but it’s most desperate among blacks.

College graduation rates have increased among black students, and along with the increase there has been an increase in salaries, but savings have declined. As of 2015, 22.5% of black students and 15.5% of Hispanic students had completed four years of college. This compares to 36.2% of white students, an inequality, but not a horrible one. By 2013, the average salary of a black college grad was somewhat over $1000/week, somewhat less than the average for whites, but enviable compared to the world as whole. The problem is that black workers manage to save very little compared to other ethnic groups, and compared to previous savings rates as shown by the graphic below. By 2013, the net worth of the median black family (savings, plus paid-off part of home and car) was a mere $11,000 (Pew Research Data, below), down from $19,200 six years earlier, and much lower than the net worth of white families (also down since 2007). Liquid savings among blacks are much lower — near zero — and this is just the mean. Half of all black families are doing worse.

Net worth disparity 2007 - 2011. Black folks are doing poorly and it's getting worse.

Net worth disparity 2007 – 2011. Black folks are doing poorly and it’s getting worse.

The combination of low savings and low net worth puts black folks at a distinct disadvantage to their condition six years earlier. Without savings, it is near-impossible to weather the loss of a job, or even to fix a car or pay a ticket, Surviving through a disease is basically a one-way ticket to the welfare office. Six years ago, when people saved more and prices were lower, problems like these were major annoyances. Now, a job loss or a major repair is a family disaster.

The growth of check-cashing services in black neighborhoods is a symptom, I suspect, of the lack of liquidity. A person without savings will not have a checking account. As such, he or she will not have a credit card or check cashing privileges.  The only way to cash a check will be via a for-fee service, and these tend to come at a steep cost (2-5%). People with savings accounts can cash checks essentially for free, and can usually borrow money by way of a credit card. People without savings can’t get approved. Black people and poor whites tend to use debit cards instead. They look and work like credit cards, but they incur fees upon use, and do not provide instant loans. When black folks and poor whites need quick cash, their options are the loan-shark or the pawn shop: high-cost options that take a giant toll on the family.

As mentioned above, black individuals and families have lower incomes than whites at all education levels. While racism, no-doubt plays a role, as best I can tell, the largest single cause seems to be family stability. Employed, college-educated blacks earn, on average, 95% as much as employed, college-educated whites — not great, but not bad. The real problem with black income is that black unemployment rates are higher, black education rates are lower, and single-parent families are significantly more common among blacks than among whites and Orientals. Roughly 40% of black families are single-mother, or mother+grandparent households compared to “only” 26% in the population generally. In both populations, the number of single parent households have increased dramatically in the last few years, a result I suspect of the government’s desire to help. The government gives more aid to a split-up couple than to one that stays together, but the aid brings with it long-term damage to net worth. A family with one parent will naturally have a lower-income and savings rate than a family with two. The lack of stability and savings that comes from having a single parent family, I suspect, has contributed to crime, births out-of-wedlock, and the tendency of blacks to drop out of college.

Black families don't benefit as much from college --in part a result of the choice of courses.

Black families don’t benefit much from college –in part a result of course choices, in part the result of borrowing. (Forbes, 2015).

One finds that do-gooders in the white communities want to eliminate check cashing businesses and pawn shops in a misguided desire to help the low-income neighborhoods, but the success of these companies tell me that they are needed. Though check services and pawn brokers take a nasty bite, urban life would be much worse without them, I suspect.

Another so-called solution of the do-gooders, is to tax savings and transfer the wealth to the poor. This form of wealth redistribution has been a cornerstone of the Democratic party for the last century. The idea of the tax is that it will transfer “idle wealth” from rich savers to poor folks who will spend it immediately. The problem is that great swathes of the nation don’t save at all currently; net worth is down all across the US — among white and black families both. Taxing savings will almost-certainly reduce the savings rate even further. Besides, savings are the stuff of self-determination and dreams — far more than spending, it is savings that allows a person to start a new business. One does not provide for the dreams of one group by taking them from another — particularly another group chosen to be immediate spenders. That is a route to community disaster, is seen by looking at Detroit.

As it is, many poor, inner city children do not see a path out via education. Detroit school attendance hovers around 50%, and business startups are lacking. As best inner city people can tell, the only ways out are sports, music, prostitution, crime, and the church. With higher savings rates and higher family stability, folks could start businesses, and/or take advantage of job opportunities that come along. People seem to think that wealth redistribution should help, but it just seems to reduce savings and family stability. Every effort to increase wealth redistribution only seems to make things worse in Detroit.  It sometimes seems that the only businesses in Detroit are check cashing, pawn brokers, churches, hair-salons, fast food, and medical marijuana — businesses that require little investment, but provide little community return too. Detroit has lost its manufacturing center, and now has more medical marijuana providers than groceries — a sad state of affairs.

The Check cashing services of south-eastern MI are concentrated in poor black and white neighborhoods.

The Check cashing services of south-eastern MI are concentrated in poor black and white neighborhoods.

In 2016, both presidential candidates touted major infrastructure projects, highways and the like, to help the inner city poor. In principle this can help, but I have my doubts. One basis of doubt: inner city youth do not have the training to build roads and bridges — they have barely the training to work at McDonald’s. For another thing, if the project itself isn’t needed, it becomes another form of income redistribution. There tends to be a lack of pride in doing it well, and the benefits are basically nothing. A major war could provide jobs, of course, but most sane people prefer peace. Trump has made the case for tariffs (closing off free trade) as a way to rebuild the industrial center of cities like Detroit. It’s an approach that I think has merit. He’s also suggested closing the border to low-wage, Mexican workers, and recently signed a bill that raised the minimum wage for foreign workers. This is expected to raise the price of California lettuce and NY hotel stays, but is likely to increase employment among low-skill Americans — blacks and poor whites. Small steps, I think, to solving a serious national problem.

Robert E. Buxbaum, April 21, 2017. I ran for water commissioner 2016 (Republican). I lost. I also have some infrastructure suggestions, including daylighting some rivers and adding weirs to improve water quality and stop flooding. If you like my ideas (or don’t) please provide comments.

pee in the shower and other water savers

Do you want to save the planet and save money at the same time? Here are some simple tips:

The first money and planet saver, is to pee in the shower. For those who don’t have a lawn, or who don’t water, your single biggest water cost is likely the toilet. Each person in your household will use it several times per day, at roughly 1.6 gallons per flush. In Oak Park, Michigan the cost of water is 1.5¢/gallon, so each flush costs you, roughly 2.5¢. If you pee in the shower every morning, you’ll save yourself about one flush per day, or 2.5¢. Over the course of a year you’ll have used about 500 gallons less, and will have saved yourself somewhere between $5 and $10. Feel good about yourself every morning; the effort involved is truly minimal.

Related to peeing in the shower, I should mention that many toilets leak. A significant part of your water bill can often be cut by replacing the “flapper valve on the inside of your toilet tank, and/or by cleaning the needle fill valve. To see if you need this sort of help, put a few drops of food dye in the toilet when you leave in the morning. If the color is largely gone by the time you get back, the toilet is leaking the equivalent of a few volumes per day, that is at least as much water as is flushed. If the color goes faster, or you hear the tank refill when no one used it, you’re leaking more. Check the flapper and replace it if it’s worn — it’ll cost about $3 — and check the needle-fill valve. They don’t work forever. Cleanliness is near godliness.

Mulch is good, this is too much concentrated by the tree trunk. Use only 2 inches and spread it out to save water and weeding.

Mulch is good, this is too much concentrated by the tree trunk. Use only 2-3 inches and spread it out from the trunk to save water and weeding without attracting bugs.

If your valve is leaking and you decide to replace it, you may want to replace with a variable flush valve. Typically, there are two options: a big vale for big flush (1.6 gal) and a small valve for small flush (1 gal or less). These are widely used in Europe. You can make up for this cost rather quickly at 1.5¢/gallon.

The next big issue is lawn-care. If you water your lawn and flowers daily, you’ve likely noticed that you pay about $300/month for water in the summer: a lot more than in the winter, or than your lazes-faire neighbor in the summer. Every $150 of summer-excess, water bill you pay represents about 10,000 gallons applied to your lawn. That’s a cubic foot, or 1¢ to 2¢ of water applied per ft2 per month for typical watering. While many sites advise that you can save by adding a rain barrel, I disagree. Rain barrels are costly, ugly, and are a lot of work ago plumb in. And each barrel only holds 55 gallons of water, 82¢ worth when full. You do a lot better, IMHO by putting down an inch or two of mulch around your flowers and vegetables. This mulch requires no work and will keep you from needing to water these areas for the 3-4 days after every rainfall. A layer of 1″ to 2″ will help your soil hold 0.5 to 1 gallon of water per square foot. At typical prices of mulch and water, this will pay for itself in 1-2 years and will help you avoid weeding. Mulch is a far better return than the rain-barrels that are often touted, and there’s far less effort involved. Buy the mulch, not the barrel, but don’t put down too more than 2″ on flowers and vegetable. Trees can take 3 -4″; don’t use more. Avoid a mulch mountain right next to a tree, it causes the roots to grow weird, and provides a home for bugs and undesirable anaerobic molds.

A little more work than the above is to add a complete rain garden or bioswale. Build it at the bottom of any large incline on your property, where the water runs off (It’s likely a soggy swamp already). Dig the area deeper and put, at the bottom of the hole, a several-inch layer of mulch and gravel. Top it off with the soil you just removed, ideally raising the top high enough that, if the rain garden should fill, the water will run off to the street. Plant in the soil at the top long-rooted grasses, or flowers, vegetables, or water-tolerant trees. You may want to direct the water from your home’s sump pump here too (It can help to put a porous pipe at the bottom to distribute this water). If you do this right, you’ll get vegetables or trees and you won’t have to water the garden, ever. Also, you’ll add value to your property by removing the swampy eyesore. You’ll protect your home too, since a major part of home flooding comes from the water surge of sump water to the sanitary sewer.

Robert E. Buxbaum, April 14, 2017. I ran for water commissioner, Oakland County, MI, Nov. 2016. Among my other thoughts: increased retention to avoid flooding, daylighting rivers, and separating the sanitary from the storm sewers. As things stand, the best way to save money on water– get the same deal the state gave to Nestle/ Absopure: they pay only $200/year to pump 200 gal/minute. That is, they pay only 1/3000 of what you and I pay. It helps to have friends in government.

Taxes and accounting jokes

A friend called the other day asking about a financial matter. It seems his wife bought some pictures for  pictures a few days ago for $2000, and after having them apprised, she finds they’re worth $2,000,000.

I started talking about un-realized profits, and mentioned that I never imagined that his wife had such an eye for art. He said, they’re not art pictures, exactly; they’re of you discussing business with the Russians. (It’s a joke — I thought you-all might depreciate it).taxation with representation

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When I started my business, I found that you could deduct medical costs. I called the IRS and asked if I could deduct birth control. They told me: “only if it doesn’t work.”

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I’m glad I learned about parallelograms in school, instead something mundane, like taxes. It’s really come in handy this parallelogram season.

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I got a robo-call asking me to press “1” to hear about a government program for those who wanted to avoid paying back taxes. I did, and a voice said “Leavenworth.”   It wasn’t much of a program, more of a sentence.

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Robert E. Buxbaum, April 5, 2017.  For jokes on other topics, click the jokes tag, here.